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Construction Delay Claims

What is Liquidated Damages (LD)?

It is a pre-agreed sum in the contract (e.g., $1000 per day) that the contractor pays if they fail to complete the project on time. It replaces proving actual damages.

Can I claim extra money for weather delays?

Usually, you can get an Extension of Time (EOT) for exceptionally adverse weather, preventing penalties, but you typically cannot claim extra money costs for it.

What is "Concurrent Delay"?

This happens when both the client and the contractor delay the project at the same time. Determining liability is complex and often results in EOT without money.

How much can the penalty be?

Under Georgian law, the penalty must be reasonable. If it is disproportionately high (e.g., exceeding the principal debt excessively), the court may reduce it.

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Construction Delay Claims: Violations of Deadlines and Compensation

In the construction industry, time is money. Project delivery delays cause financial losses for both the client (lost revenue, additional costs) and the contractor (penalties, reputational damage). Construction Delay Claims are among the most common types of disputes. Delays can be caused by many factors: weather conditions, material delays, permitting lags, or design changes. The main question is: whose fault is the delay, and who should be held responsible?

Legally, it is important to distinguish between "Excusable" and "Non-Excusable" delays. If the delay is the contractor's fault, the client can claim Liquidated Damages. If the delay is the client's fault (e.g., late drawings), the contractor has the right to claim an Extension of Time (EOT) and reimbursement of additional costs. Legal.ge offers experts who will help you analyze the causes of delay and protect your financial interests.

What Does Construction Delay Service Cover?

Specialists on Legal.ge offer:

  • Delay Analysis: Using the Critical Path Method (CPM) to determine which event caused the project completion date to slip.
  • Extension of Time (EOT) Claims: Preparing documentation for the contractor to prove that the delay was caused by reasons beyond their control (e.g., force majeure).
  • Calculation of Penalties: Precise calculation of sanctions provided by the contract based on the number of delayed days.
  • Lost Profit Claims: If the delay caused a business stoppage, claiming compensation for damages.
  • Acceleration Claims: Compensation if the client required work to be accelerated following a delay, which involved additional costs.

Common Scenarios and Real-World Examples

Delay disputes often arise from:

  • Adverse Weather: Unusually long rains prevent foundation pouring. The contractor requests a time extension.
  • Variations: The client changed the design during construction, causing a holdup. The contractor requests extra time and money.
  • Permit Delays: The City Hall delayed issuing the building permit. This is a "client risk" unless stated otherwise.
  • Force Majeure: A pandemic or war stops material supply. Parties are relieved of liability for delay.

Georgian Legal Framework

Delay regulation is based on:

Civil Code Articles 400-404 (Breach of Obligation). The law establishes that if a debtor delays performance, the creditor can claim damages. The Code also regulates penalties (Articles 417-420), stating they must not be disproportionately high.

FIDIC Contracts: Detailed regulation of EOT (Clause 8.4) and Delay Damages (Clause 8.7). Sending a notice within a specified timeframe (e.g., 28 days) is mandatory; otherwise, the claim is lost.

Step-by-Step Service Process

Working with a lawyer on Legal.ge involves:

  1. Timeline Reconstruction: Gathering construction logs, letters, and minutes.
  2. Causation Analysis: Who is responsible for the delay?
  3. Notification: Sending a formal claim to the other party.
  4. Resolution: Settling via negotiation or arbitration.

Why Choose Legal.ge?

Delay disputes are technically complex and require knowledge of construction management principles. Legal.ge gives you access to lawyers who can "read" construction schedules and protect your rights against unjustified penalties or losses. Manage time and money efficiently.

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