Construction projects around the country are experiencing delays. These delays can lead to extended general conditions, idle labor and equipment costs, material cost escalation, and de-mobilization and re-mobilization costs. But, how do you recover those damages?
The first step to recovering delay damages is to provide notice. But, your notice has to be timely and it has to follow the requirements of the contract. So, review the contract and make sure you know when notice must be provided, to whom it must be provided, and what the notice must contain.
Document Your Losses
Regardless of the basis for your claim for delay damages, you must document the loss. If you have to rent a field office, keep copies of the payments you made to the landlord. You may find it beneficial to calculate a general conditions daily rate to determine the cost of extended performance. Again, make sure you have the documents that support the underlying calculation.
If your labor and equipment is idle, make sure you keep the daily reports showing that your work crews were unable to work on a particular day.
Engage an Expert
Calculating delay damages can be very cumbersome and confusing. It may be beneficial to hire an expert, someone who spent a career in the construction industry and knows how to calculate your losses. If your claim does go to litigation, it will be invaluable to have someone in your corner that has reviewed your documentation and can support your claim for damages.
Project delay, especially in this time of COVID, is becoming increasingly common. Make sure you provide proper notice of your claim and that your claim is well documented. If you need help assessing your delay claim, we recommend you contact an experienced construction attorney.