Construction delays are one of the most common problems in Georgia, causing significant financial damage to both clients and investors. Project delays often lead to additional costs, lost revenue, and disrupted business plans. Project Delay Claims are a legal mechanism allowing the injured party to demand compensation for the violation of contractual deadlines. The Civil Code and standard construction contracts (including FIDIC) provide mechanisms for penalties and damages, but their practical application requires precise determination of the causes of delay.
Delays can be "excusable" (e.g., force majeure, client's fault) or "non-excusable" (contractor's disorganization, lack of resources). The lawyer's role is to analyze the causes of the delay, determine liability, and demand adequate compensation. Legal.ge gives you access to experts who will help you obtain maximum compensation from delayed projects or defend against unjustified penalties.
What Does Project Delay Claims Service Cover?
This service covers all legal aspects related to deadline violations:
- Delay Analysis: Analyzing the Critical Path Method (CPM) and construction schedule to determine what caused the delay and who is responsible.
- Penalty Claims: Calculating and demanding contractual penalties (liquidated damages) for each day of delay.
- Extension of Time (EOT) Claims: Defending the contractor if the delay was caused by objective circumstances (e.g., bad weather, permit delays) and they are entitled to an extension.
- Damages: Calculating and claiming direct losses and lost profits (e.g., lost rent) caused by the delay.
- Litigation & Arbitration: Handling disputes regarding deadline violations in court or arbitration.
Common Real-World Scenarios
Delay disputes often unfold according to the following scenarios:
The first scenario is "Developer Delay." A buyer purchased an apartment due for delivery in 2022, but it remains unfinished in 2024. The buyer demands penalties (usually 0.1% per day) and reimbursement of rent paid for living elsewhere.
The second case is "Permit Delay." The contractor could not start work because the City Hall delayed issuing the construction permit. The client demands a fine. The contractor requests an Extension of Time (EOT) because the delay was not their fault.
The third scenario is "Project Changes." The client changed the design during construction (e.g., added a floor). This automatically pushes back deadlines. The dispute is about how many days the deadline should be extended.
The fourth situation is "Force Majeure." Supply of materials was disrupted due to pandemic or war. The contractor requests exemption from liability.
Georgian Legal Framework and Regulations
Delay regulation falls under the Civil Code:
- Breach of Obligation: The Civil Code establishes liability for missing deadlines.
- Penalties: Parties can agree on penalties for delay, though the court has the right to reduce them if they are disproportionately high.
- Force Majeure: Irresistible force exempts a party from liability during the delay period.
Process and Stages
The lawyer analyzes construction logs and correspondence to establish the factual causes of the delay. If the delay is the contractor's fault, a demand for penalties is sent. If the delay is the client's fault (e.g., late delivery of drawings), the contractor claims an Extension of Time. If no agreement is reached, the dispute moves to court.
Why Legal.ge?
Time is money, especially in construction. On Legal.ge, you will find lawyers who will help turn lost time into financial compensation or escape unjustified fines.
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