The success or failure of a commercial construction project depends largely on the construction schedule and whether that schedule is met. Delays in the construction schedule negatively impact both owners and contractors. Delays cause owners to absorb additional costs by not being able to use or occupy their property for its intended purpose. Delays negatively impact construction contractors by driving up the costs of construction resulting from having to pay for a workforce and/or equipment that sits idly by as the delay continues. In addition, contractors may incur increases in the price of construction materials and fuel during the delay, resulting in increased overhead costs and general conditions. Given the severe monetary impact construction delays may have on both owners and contractors, it should come as no surprise to anyone involved in the construction industry that delays in completing a construction project are a primary source of disputes, claims, and litigation.
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