When Do Construction Delays Justify Legal Action?

Delays are an unfortunate reality in the world of construction projects. Whether you’re a contractor, subcontractor, or property owner, delays can lead to significant disruptions in the timeline, costs, and overall success of a project. 

However, not all delays warrant legal action. In some instances, delays are simply a part of the construction process, while in others, they may be a clear violation of contract terms. So, when do construction delays justify legal action?

As construction law attorneys serving Overland Park, KS, we regularly help clients understand their rights when facing project delays. The team at Myers Longhofer, LLC wants to clarify what constitutes a breach of contract, how to identify delays that may warrant legal action, and what steps to take to protect your interests in such situations.

Understanding Construction Delays

Before we dive into when a delay might justify legal action, it’s important to understand what a construction delay is. A delay occurs when the project cannot proceed as planned within the timeline set out in the contract. This can happen for various reasons, such as poor weather conditions, supply chain disruptions, or labor shortages.

However, a delay isn’t always a breach of contract. There are many situations where delays are unavoidable and acceptable under the terms of a contract. For example, the contract might include a "force majeure" clause, which releases a party from responsibility if a delay is caused by events outside of their control, such as a natural disaster or unforeseen global events.

On the other hand, there are situations where delays might cross the line from being an unavoidable inconvenience to a breach of contract, warranting legal action.

Common Reasons for Construction Delays

Construction projects are complicated undertakings, so delays can stem from a variety of factors. Here are some of the most common causes:

• Weather Conditions
  Inclement weather is one of the most frequently cited causes of delays in construction projects. Rain, snow, extreme heat, or other adverse weather conditions can halt construction activities or make work dangerous. In many cases, weather delays are accounted for in the construction contract and may not be grounds for legal action.
  

• Supply Chain Issues
  Disruptions in the supply chain, whether due to global shortages, transportation issues, or vendor problems, can delay the delivery of materials. Without necessary supplies, contractors may be unable to proceed with scheduled work.
  

• Labor Shortages
  A shortage of skilled labor, whether due to high demand, illness, or other factors, can delay a project. While some delays may be inevitable, they should be addressed in the contract to avoid disputes down the line.
  

• Unforeseen Site Conditions
  Discovering unexpected conditions at a job site—such as unstable soil or the need for hazardous material remediation—can delay progress. Often, these types of conditions are addressed with contingency clauses in construction contracts.
  

• Design and Approval Delays
  Delays can also arise when there are issues with project designs or when waiting for necessary approvals from local authorities. If the plans need to be modified, or permits are delayed, the entire project may be pushed back.
  

• Owner-Related Delays
  In some cases, delays may be caused by the actions (or inactions) of the project owner. For example, failure to make timely decisions or provide necessary documents or access to the site can lead to project delays.

When Do Delays Become a Breach of Contract?

Not all delays are treated equally under construction law. Some delays are simply part of the project, while others are a breach of contract that might justify legal action. The key to determining whether a delay constitutes a breach is to refer to the specific terms of the contract.

As experienced construction law attorneys, we often see situations where delays are clearly avoidable or due to negligence. These situations may justify legal action. Below are some examples where delays might become a breach of contract:

• Failure to Meet Contract Deadlines
  If the construction project has a set timeline, and the contractor fails to meet these deadlines without an acceptable reason (as defined in the contract), this may be a breach. Timely completion of the project is typically an essential term of the contract, and failure to meet these deadlines could give rise to a claim for damages.
  

• Insubstantial Progress or Incompetence
  Delays caused by poor workmanship or a lack of skill may also constitute a breach of contract. If a contractor fails to perform adequately and this results in delays, they could be liable for damages.
  

• Noncompliance with Safety or Legal Standards
  If the delay is due to the contractor’s failure to comply with safety regulations, environmental laws, or zoning ordinances, the delay could be considered a breach. Contractors are obligated to follow all legal requirements and building codes, and failure to do so can not only delay the project but also cause legal problems.
  

• Owner-Related Delays Not Addressed
  If the property owner has caused the delay—by failing to provide access, failing to make timely decisions, or withholding payments—and this delay is not excused by the contract terms, the contractor might have grounds to pursue legal action. In some cases, contractors may be entitled to compensation for losses resulting from owner-caused delays.

How to Handle Construction Delays

When a construction delay arises, there are several steps contractors, subcontractors, and property owners can take to address the issue before considering legal action.

• Document Everything
  One of the most critical steps in dealing with delays is keeping accurate records. This includes documenting the cause of the delay, when it occurred, and any communications with other parties involved. Documentation is vital if the situation escalates and legal action becomes necessary.
  

• Review the Contract
  Carefully review the terms of the construction contract. Look for clauses that address delays, such as force majeure clauses or provisions related to extensions of time. If the contract allows for certain delays (such as those due to weather or unforeseen conditions), make sure these conditions are met before pursuing legal action.
  

• Communicate with All Parties
  Open communication is key. Contractors, subcontractors, and property owners should keep each other informed about the status of the project and any potential delays. Timely communication may help prevent misunderstandings and reduce the chance of conflict.
  

• Mitigate the Delay
  When possible, parties should work together to find ways to mitigate the delay. This might involve adjusting the work schedule, hiring additional workers, or seeking alternate materials. Taking proactive steps to minimize the impact of the delay can help reduce the risk of legal action.
  

• Negotiate a Resolution
  In many cases, it’s possible to resolve construction delays without resorting to litigation. Negotiation may involve adjusting timelines, agreeing to additional compensation, or determining new payment schedules. A construction law attorney can help parties negotiate a fair solution that avoids court.

When Should You Consider Legal Action?

If delays are significantly harming the project’s success and cannot be resolved through communication or negotiation, it might be time to consider legal action. Legal action could involve filing a breach of contract claim or seeking damages for delays caused by negligence, incompetence, or failure to meet deadlines.

Here are some situations where legal action might be necessary:

• Repeated and Unjustified Delays
  If a contractor continually fails to meet deadlines without valid reasons, or if they consistently fall behind schedule, it may be time to take legal action. Repeated delays can severely impact the project’s budget and timeline, making it important to protect your interests.
  

• Major Financial Losses
  If the delay results in significant financial loss—such as lost business opportunities, increased operational costs, or lost rental income—legal action may be warranted to recover those costs.
  

• Failure to Comply with Contract Terms
  If the contractor has failed to perform in accordance with the terms of the contract, and the delay is due to their actions or inactions, a breach of contract claim may be appropriate. A construction law attorney can help determine whether the breach justifies legal action.
  

• Disputes Over Payments or Completion
  If the project owner has withheld payments, or the contractor has failed to complete the work, legal action may be necessary to resolve the dispute. A court may determine whether the work has been completed per the contract and whether any financial compensation is owed.

Construction delays are often frustrating and costly, but not all delays justify legal action. If you find yourself in a situation where delays are significantly affecting your project, it’s crucial to review your contract and communicate with the other parties involved. If the delay stems from avoidable causes or a breach of contract, then legal action may be necessary to protect your interests.

Contact Us Today

Serving Overland Park, KS; Kansas City, MO; Johnson County, KS; Olathe, KS; Leawood, KS; and Shawnee, KS; we regularly help clients understand their rights when facing project delays.

Whether you are a contractor or a property owner, we can guide you through the legal process. If you find yourself dealing with unjustified delays, reach out to the team at Myers Longhofer, LLC.