Whether a construction project involves a kitchen modernization that leaves a home uninhabitable temporarily or reworking a retail space to accommodate a different type of business, completing the work on time is important for everyone involved.
Property owners may experience major financial setbacks if they cannot regain tenancy of their homes or open business facilities and begin conducting business there. They lose income or incur direct expenses, such as the cost of an apartment or long-term stay motel room during the project.
Those affected by expected construction delays may look at the agreement they signed, including any estimated timeline provided by the construction business, and wonder if they can request compensation for the delay-related expenses they incur. Who is usually liable for the various costs generated by construction delays?
Professionals and businesses could be liable
Liability for construction delay expenses depends on many factors. The specific wording of the contract and any promises regarding the estimated completion date are important to consider. Many contracts include language that limits liability for reasonable delays.
The underlying reason for the delay is another key detail. If the construction company or professional could have prevented or at least limited the delay but failed to do so, there could be a degree of liability there. The promptness with which they communicate the issue to the property owner is another factor to consider.
Businesses and their commercial insurance policies can sometimes help offset some of the losses generated by major construction delays, but legal action may be necessary to obtain compensation for lost revenue or alternative housing expenses caused by delays. Reviewing communication records and contracts with a construction litigation attorney can help frustrated property owners understand their options accordingly.