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Contracts & Legal

Delay Claim

In Plain English

A contractor's demand for more money or time because someone else's actions slowed down the project.

Definition

A delay claim is a demand by the contractor for additional compensation and/or time resulting from project delays caused by the owner, designer, or other parties for which the contractor is not responsible. Delay claims require documentation of the cause, duration, and cost impact of the delay. They are among the most common and complex disputes in construction.

Why It Matters in Bidding

Delay claims directly affect a contractor's recovery of time and money, and how a bid is priced often determines whether a claim later succeeds. Clear baseline schedules, documented assumptions, and well-defined scope at bid time create the record needed to prove an excusable, compensable delay. Weak documentation turns a legitimate delay into an unrecoverable cost the contractor absorbs.

Example

When the owner takes six weeks longer than specified to approve a critical shop drawing, the contractor files a delay claim with the as-planned versus as-built schedule, showing the holdup pushed the critical path and seeking both a time extension and extended general conditions.

Related Terms

Frequently Asked Questions

An excusable delay entitles the contractor to a time extension but not money, such as unusual weather. A compensable delay, caused by the owner or designer, entitles the contractor to both added time and additional cost. Non-excusable delays are the contractor's own fault and may expose it to liquidated damages.
A baseline CPM schedule, contemporaneous daily reports, RFIs and their response dates, photos, and updated schedules showing critical-path impact. The strongest claims tie the specific delaying event to movement on the critical path and quantify the cost impact, rather than asserting a general slowdown without a measurable link.
Concurrent delays occur when owner-caused and contractor-caused delays overlap on the critical path. Recovery is often limited: courts and contracts frequently allow a time extension but deny added compensation when the contractor's own delay ran concurrently. Careful schedule analysis is needed to separate and apportion the overlapping causes.

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