Understanding and Managing Construction Delays

Construction delays cannot always be avoided, however they can be properly managed within any construction project. These delays, caused by factors such as material shortages, unfavorable weather, or a lack of skilled labour, can have a domino effect onsite. This article seeks to outline proactive measures such as efficient project management tools, knowledge of contractual rights, and effective team communication, in order to better anticipate, manage, and swiftly resolve delays.

The Building Period in Your Contract

When you first sign the construction contract you will note that the builder has nominated a building period within the front schedule. This building period will be stated in one of two ways: as a hard date for practical completion (i.e. 20 January 2025) or as a period of time (i.e. 120 days). It is important to note the building period listed and have a firm idea as to when the building is expected to be completed.

Since the COVID pandemic many builders are quite wisely making the building period a little longer than they would ordinarily need to complete construction. Throughout the pandemic there was a critical shortage of timber and other essential items onsite and the builders had little protection within the contracts for these contingencies. As a result, most builders will allow themselves a little ‘wriggle room’ within the contract and this is a proactive way to avoid disputes and manage expectations from the get-go.

Causes of Delays and Proactive Planning

Even with this ‘wriggle room’ there are sometimes things that happen that delay construction onsite. Grasping the fundamental reasons behind construction delays is key to anticipating and potentially avoiding them in your building project. There is unfortunately a domino effect where one small delay has a ripple effect on every subsequent task. Allowing the builder to proactively plan for potential setbacks and using efficient project management tools can significantly mitigate the negative impact of these delays. These tools can help ensure each task is completed on schedule and any deviation from the timetable is immediately flagged.

Contracts and Extensions of Time

Understanding the legal repercussions and the roles of contracts in construction delays is critical when it comes to delays. A contract is not just a document, but rather a safeguard that outlines the responsibilities, deadlines and potential penalties tied to the project. The builder may have to issue an Extension of Time Claim for your signature. There may be delay damages payable if the delay is not caused by a ‘claimable delay’ under the contract. It is important that you understand the process that is to be followed under the contract in the event of a delay.

Communication and Early Resolution

Finally, implementing effective communication strategies among all parties involved in the project can dramatically aid in the early detection and resolution of construction delays. Regular project updates and open channels of dialogue can bring everyone up to speed on the project’s progress, enabling quicker decision-making and problem-solving. Construction delays are never desired, but with the right approach they can be managed professionally and efficiently.