Lesson 8 Delays

Delay in Construction
Projects
What is Construction Project Delay?
 Delay is defined as an event that causes

extended time to complete all or part of a
project.
 Delay is generally acknowledged as the most

common, costly, complex and risky problem
encountered in construction projects.
 It is the source of frequent disputes and claims

leading to lawsuits.
CAUSES OF CONSTRUCTION DELAY
INTERNAL EXTERNAL
CONTRACTOR OWNER CONSULTANT EXTERNAL FACTORS
delay in delivery of materials lack of working knowledge absence of consultant’s lack of materials in the
to site site staff market
shortage of materials on site slowness in making lack of experience on the lack of equipment and
decisions part of the consultant tools in the market
construction mistakes and lack of coordination with lack of experience on the poor weather conditions
defective work contractors part of the consultant’s
site staff (managerial &
supervisory personnel)
poor skills and experience of contract modifications delayed and slow poor site conditions
labour (replacement & addition of supervision in making (location, ground, etc.)
new work to the project & decisions;
change in specifications)
shortage of site labour financial problems (delayed incomplete documents; poor economic conditions
payments, financial (currency, inflation rate,
difficulties, & economic etc.)
problems).
low productivity of labour slowness in giving changes in laws and
instructions. regulations
financial problems transportation delays
coordination problems with external work due to
others public agencies (roads,
utilities and public
services)
lack of subcontractor’s skills
lack of site contractor’s staff
poor site management

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equipment and tool shortage
Classification of Construction Project Delays
Classification Non-Excusable
Excusable Delay
according to liability Delay
Non-Compensable Compensable
Delay Delay
Construction
Delays Classification
according to
Occurrence
Independent Delay Concurrent Delay
Classification
according to effect
& impact
Critical Delay Non-Critical Delay
1. Classification According to liability

A. Excusable delay is “a delay in completion
which is caused by matters outside the
control of the contractor”. Such delays
excuse the contractor from performing
the contact on time and give him the
right to have extra time.
 There are 2 types of excusable delays:

i. Compensable
ii. Non-Compensable
i. Compensable Delays
 When a delay is caused by the owner or his
representative, the contractor is
compensated by automatically giving him
the right for extension of time and to
recover his damages (financial loss) as
well.
 in some special circumstances, a
compensable delay does not always mean
that additional time is due, sometimes,
only additional costs will be given.
ii. Non Compensable Delays

 When a delay is caused by force majeure, like
weather problems, each party is expected to
carry its share of the consequences of the
delay.
 In Non-Compensable delays, the contractor is

only entitled to a time extension without the
recovery of associated cost of damages.

 In other words, each party is to bear its own
losses.
B. Non-Excusable Delays
 Non excusable delays result purely from
contractor’s faults and the owner is
compensated for all losses suffered due to
the contractor’s faults by using liquidated
damages e.g. delays in execution, design,
poor productivity of labour or project
management problems.
 In non-excusable delays, the contractor

does not get either extra time or money.
2. Classification According to Occurrence
A. Independent delay: Independent delay occurs

when there is only one cause of delay operating
at a particular time, which is the responsibility of
a single party. Independent delay does not
postpone the project completion date. e.g. a
delay caused by the owner or the contractor
B.Concurrent Delay
 Concurrent delay occurs when a contractor and an

owner have both caused independent critical path
delays, that is, delays that affect the completion
date of a project during the same approximate time
period.
 As a result, neither the contractor nor the owner can

recover damages without a clear allocation of each
party’s delay and expense EXCEPT if there is a
contract provision that allows that.
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Concurrent delays cont’d
 The most important question to ask in determining whether

delays are concurrent is this: Are the individual impacts critical
to completion? Often, hundreds of delays occur on a project
that absorb “float” within the schedule, but do not ultimately
postpone the completion date.
 Only delays that extend completion can be considered

concurrent!
 In concurrent delays generally, the contractor receives an

extension of time without cost and the owner doesn’t receive
liquidated damages.
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3. Classification According to effect & Impact
A. Critical Delay: Critical delays affect the whole project and

extend the project duration.
B. Non Critical Delay: non critical delays only affect the

activities with float on the time schedule and they do not
extend the project duration.
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Requirements for a Successful Delay Claims
What is Required for a Successful Delay Claim?

 In order to establish a delay claim, the following elements must
be proven or present:
a. The events or problems alleged actually caused the delay. One
of the principal methods used for proving causation in delay
claims is to use the critical path method (“CPM”)
b. The innocent party must prove that the delay is inexcusable
and compensable (i.e. the responsibility of the party at fault);
c. Notice of the delay must be given;
d. A contractor should review the contract to determine whether
the contract allows for an extension of time or both an
extension of time as well as compensation; and
e. Evidence in the form of accounting records to prove damages
must be available.
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Delay in Construction

 Delay is defined as an event that causes

 Delay is generally acknowledged as the most

 It is the source of frequent disputes and claims

lack of site contractor’s staff

poor site management

1. Classification According to liability

 There are 2 types of excusable delays:

ii. Non Compensable Delays

 In Non-Compensable delays, the contractor is

 In non-excusable delays, the contractor

2. Classification According to Occurrence

A. Independent delay: Independent delay occurs

 Concurrent delay occurs when a contractor and an

 As a result, neither the contractor nor the owner can

 The most important question to ask in determining whether

 Only delays that extend completion can be considered

 In concurrent delays generally, the contractor receives an

3. Classification According to effect & Impact

A. Critical Delay: Critical delays affect the whole project and

B. Non Critical Delay: non critical delays only affect the

What is Required for a Successful Delay Claim?

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