AN OVERVIEW OF CONSTRUCTION CLAIMS: - Clark Wilson LLP

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p. 2 Delay Caused By The Owner (g) (h) (i) (j) (k) (l) (m) Excessive changes in requirements or design; Defective or insufficient plans and specifications; Owner interference; Failure to provide adequate access to the site; Failure to obtain necessary permits for the work; Failure to coordinate the job when there are separate contracts awarded; Failure of the consultant to provide or approve drawings in a reasonable time; Delay Caused By The Contractor (n) (o) (p) (q) (r) (s) Contractor management and performance problems; Failure to properly man and perform the job; Poor workmanship; Failure to order materials and equipment in a timely fashion; Delays due to the fault of the contractor; Unavailability of labour, material or equipment; Delay Not Caused By A Party Delay not caused by a party is often referred to as excusable (as opposed to inexcusable) delay, or non-compensable (as opposed to compensable) delay: • An excusable delay is one that will serve to justify an extension of the contract performance time – it excuses the party from meeting a contractual deadline; • Inexcusable delay is one for which the party assumes the risk of the cost and consequences, including the resulting impact on others, such as delay due to a contractor’s own mismanagement; • Generally, whether a delay is excusable or inexcusable is a matter of contract. The question asked is, does the contract permit the delay in question © 2005 Clark Wilson LLP www.cwilson.com Samantha Ip, T. 604.643.3172
p. 3 • Excusable delays may be further classified into compensable and noncompensable delay; • Generally, delay that could have been avoided by due care of the one party is compensable to the innocent party suffering the damage as a result of the delay’s impact; • Delay not caused by a party is generally non-compensable delay; • If a delay is deemed compensable, then the party will be entitled to additional compensation for the costs of delay, as well as additional time for contract performance; and • It is possible for a delay to be compensable without extending the contract time. In short, delay not caused by a party is excusable and not compensable to the innocent party. When such delays occur, the owner is typically required to give an extension of the time to perform the contract to the contractor, but does not permit the owner to make a claim for any additional costs arising out of the delay, or to terminate the contract on that basis. Delay Caused By The Owner Delay caused by an owner are often compensable delay for which the owner must provide an extension of time to the contractor to complete the work and for which the owner must compensate the contractor in respect of additional costs resulting from the delay. Delay Caused By The Contractor Delay caused by a contractor does not require an owner to provide an extension of time under the contract to complete the work. If the contractor fails to complete the work in the required time, the owner is entitled to make a claim against the contractor for additional costs arising out of the contractor-caused delay. 3. The Concept Of “Float” Float is the slack time built into a construction schedule by the contractor in the event that additional time is required to complete a certain portion of the work. Float allows a contract to temporarily remove work from the critical path 5 to prevent delays to the overall construction of the project. A critical activity has been described as one that, if allowed to grow in duration at all, will cause the overall time required to complete the project to increase 6 . 5 6 A construction schedule contains a path of events that are dependent upon each other. That path is referred to as the critical path. Construction Delay Claims, 3rd Ed., Barry B. Bramble and Michael T. Callahan, 2000, Aspen Law & Business, at p. 1-13. © 2005 Clark Wilson LLP www.cwilson.com Samantha Ip, T. 604.643.3172
Page 1 and 2: AN OVERVIEW OF CONSTRUCTION CLAIMS:
Page 3 and 4: p. ii VIII. CLAIMS.................
Page 5 and 6: p. 2 • Failure of parties to coop
Page 7: V. CLAIMS ARISING OUT OF DELAY A. D
Page 11 and 12: p. 5 5. What Is Required For A Succ
Page 13 and 14: p. 7 PRODUCTIVITY • Productivity
Page 15 and 16: p. 9 • The presence of subsurface
Page 17 and 18: p. 11 2. Withholding Contract Monie
Page 19 and 20: p. 13 time extension due to the eff
Page 21 and 22: p. 15 elevations, sections, details
Page 23 and 24: p. 17 compensable delay for the con
Page 25 and 26: p. 19 3. The General Conditions - S
Page 27 and 28: p. 21 Finally, schedules serve as a
Page 29 and 30: p. 23 that the coordination of cons
Page 31 and 32: p. 25 3. The Standard of Care - Rea
Page 33 and 34: p. 27 8. Other General Conditions T
Page 35 and 36: p. 29 (b) (c) What is noticeably ex
Page 37: p. 31 (k) (l) (m) (n) (o) (p) (q) (

AN OVERVIEW OF CONSTRUCTION CLAIMS: - Clark Wilson LLP

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