Claims / Construction contractor

Who pays for concurrent delay?

Updated

There are three cases. Owner delay alone: time, and money if the contract pays delay costs for that cause. Your delay alone: neither time nor money, and liquidated damages may apply. Both at once: often time, rarely money.

How it flows

Who pays for concurrent delay?1. List each delay event2. Mark owner or contractor3. Find the overlap days4. Claim per the contract

Money is hard to get because the contractor must show the costs came from the owner's delay. When its own delay ran on the same days, the costs would have been spent anyway.

Contracts change this. AS 4000 splits concurrent days between the parties. Many amended contracts give neither time nor money for concurrent delay.

Keep records that separate the two delays. Note the dates of each, the crews affected and the work held up. Clear dates let you claim the days that are not concurrent.

Source: AS 4000 general conditions of contract. Your contract may differ.

In Australia, a contractor with concurrent delay often gets extra time but not the delay costs. The contract decides, so check it before you claim.

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