DELAYS AND LIQUIDATED DAMAGES
Designing and constructing a building takes proper planning and close attention to detail. Although both the design and construction of a project can be without defect, problems can frequently arise over the length of time it takes to complete a project. Typically, it is in the interest of both the contractor and the owner that the project get completed as quickly as reasonably possible. The financial impact of delays in the completion of a project has caused both owners and contractors to include provisions in their contracts which seek to allocate responsibilities and identify the damages that may result in the event of delays in the completion of the work. Owners frequently include liquidated damages for delay provisions in the agreements with their contractors. Contractors frequently seek to use competing “no damages for delay” clauses in the contracts. Delays in the completion of a construction project can result in substantial damages to all of the parties. Apportioning fault for these delays is an extremely difficult, imperfect and expensive task. We advise clients on the appropriate contract language to use and how to protect, pursue and defend claims for delay damages during projects and after projects are complete.