The Pitfalls of a Project Delay

October 26, 2015 by  
Filed under Legal

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One of the most costly, and common, problems that occur during any construction project is a delay. Delays are actually not the problem in itself; it’s only the measured effect. These issues at hand are the cause of the many construction delay claims being drafted today.

Not only are they an inconvenience to the construction project but as delays begin to compound, finances and project profits dwindle. That’s only a portion of the problem. Expect to see a detrimental impact on productivity as well as staff morale. These seemingly inconsequential delays can turn into a nightmare for everybody on board.

An arbitration-like process known as construction mediation can help resolve these disputes in a civil fashion. The process of mediation requires both parties to hand over their dispute to a mediator, who then overlooks the entire case without bias and comes up with a solution that mutually benefits both parties. This route beats going to court –which only ironically further delays a resolution.

The true impact of a delay comes when time begins to eat up a majority of the project profits. As explained earlier, delays will begin a snowball effect in that issues will start to multiply as they are dragged on.

Construction claim are sometimes inevitable, even with a good contract. Just because details and plans are accurately laid out, it doesn’t mean that it will help either prevent or help delays from occurring. These issues may seem daunting and perilous to a project but by realistically approaching these delays with a plan in mind, you’ll be better prepared to perform damage control successfully.

Bio: Lyle Charles, the head of Lyle Charles Consulting, has been involved with the construction industry in a variety of roles. From business coaching to claim analysis, Mr. Charles and his team are ready to help your company out today.