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Vol. 2010-07 | July, 2010

Construction Delay Claims

Construction delays and claims arising from project delays and disruptions have become an increasing impediment to project success. Of even greater concern is that sustained profit, especially under present economic conditions, has become more difficult to achieve. All participants in the construction process face increasing, relentless pressure to complete projects on-time, on-budget and of quality work and materials.

Compounding the challenges of the current economy, project participants are often confronted with greater lenders’ security requirements, owners’ demands and contract terms, complex federal, state and municipal requirements. Additionally, public projects funded by the American Recovery and Reinvestment Act of 2009, and other legal mandates must all be carefully considered in dealing with the risks of project delays.

Successful project management requires industry professionals to closely plan, monitor, and analyze construction progress. The in-charge person(s) must also be able to assess and accommodate the impact of design and material changes, substitutions, weather, skilled labor availability, and other factors that might increase the risk of delays or unexpected costs as they affect the bottom line – PROFIT !!!

Construction management requires experienced attention to basic essentials, namely:

  • Project Schedule(s), and Oversight
  • Flow Chart Organization, Setup, and Application
  • Preserving Admissible Evidence to Prove or Defend Claims for Delay, Disruption
  • Managing Events to Preserve Contract Rights and Legal Remedies
  • “Bulletproofing” to Avoid Civil or Criminal Risks
  • Minimizing Impacts of Claims
  • Legal Counsel, Implementation of Legal Avoidance, Risk Reduction
  • Preservation of Evidence
  • Postmarks, Date Stamps, and Recordings
  • Preserving Shop Drawings, Samples and Project Records
  • Construction delay claims and risk may be mitigated, reduced, or even completely eliminated by attentive management of details in the construction process.

A government which robs Peter to pay Paul can always depend on the support of Paul.
George Bernard Shaw

AUTHOR / EDITOR: J. NORMAN STARK is an Attorney-at-Law, a Registered Architect, (AIA, NCARB) Registered Landscape Architect, Interior Designer, Planner and Senior Appraiser (ASA), admitted to practice law before the Bar of Ohio, the US District Courts, Ohio and Illinois (Central Dist.), the US Court of Appeals, and the United States Supreme Court. He is a Mediator, Arbitrator and Litigator with experience in Business, Construction Law, and Public Works, and with additional experience in Real Estate, Construction Attorney (Legal Project and Crisis Management), and as an Expert Witness (Forensic Architect). His office is in Cleveland, Ohio.