Case Study: Construction Delay Dispute
Construction schedule delay claims are a leading cause of disputes in the construction industry. Defending against or pursuing such claims often involve complex analysis of the contractual obligations, the causes of the delay, and the types of damages available. In this case, our client was sued by the general contractor for breach of contract that caused a delay in the project’s timeline.
Construction Delay Claim Dispute Background
Our client, a precast concrete manufacturer, was subcontracted by a general contractor, overseeing the reconstruction of a highway overpass, to manufacture and deliver mechanically stabilized earth (MSE) retaining walls. Over the course of the construction, the project fell behind schedule for various reasons including weather issues and a 90-day delay initiating the project. Our client delivered the contracted MSE walls before the materials were needed at the job site, but after the deadline imposed by the project schedule.
The general contractor subsequently sued for breach of contract stating our client “failed to deliver to work in a timely fashion and caused a delay.” The general contractor sought more than $650,000 in damages across five different categories, including labor disruption, extended home office overhead, increased rental equipment costs, plus attorney’s fees and expert fees.
The subcontractor retained Trey Hendershot and Ian McNeill of Hendershot Cowart P.C., to represent them in the suit.
Are you ready to take action to pursue or defend a construction delay claim? Call (713) 909-7323 or contact us online today to speak with a layer about your options.
Mr. Hendershot and Mr. McNeill teamed up with an expert adept at construction schedule analysis to help formulate a defense strategy. The expert was able to identify relevant documents that would be needed to refute the delay allegations, which were then requested in written discovery. The plaintiff, however, withheld documents—including the project’s daily progress reports.
Mr. McNeill filed and won a motion to compel the plaintiff’s attorneys to produce all of the requested documents and a motion for continuance to request additional time for expert review. Once in receipt of the missing documents, our expert was able to identify numerous flaws in the plaintiff’s methodologies for calculating damages.
Results of Construction Delay Dispute
Mr. Hendershot and Mr. McNeill successfully argued in mediation that there were multiple activities that affected the project’s timeline and that our client’s delay did not impact the actual progress of construction. As a result, the two parties settled the claim, as well as another pending claim, for less than a third of our client’s total exposure. Mr. McNeill also successfully negotiated for extended payment terms of the settlement amount.
Retaining a legal team experienced in construction delay claims early on was crucial for the success of this case. The construction law attorneys at Hendershot Cowart P.C. have a clear understanding of the critical elements of a breach of contract claim and regularly represent both defendants and plaintiffs in construction litigation.
If you wish to discuss a potential construction delay claim or any construction legal matter, call (713) 909-7323 or contact us online to speak with an attorney.
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- March 19, 2020 Coronavirus Construction Delays & Disruptions: Managing Risks Read More
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Underlying Causes, Effects and Mitigation Measures of Delays in Construction Projects
- Conference paper
- First Online: 28 November 2024
- pp 1879–1892
- Cite this conference paper
- Upeksha Madanayake 23 &
- Virginia Toli 24
Part of the book series: Lecture Notes in Operations Research ((LNOR))
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- International Symposium on Advancement of Construction Management and Real Estate
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Delays in construction projects are identified as a worldwide issue as it has been addressed in many recent empirical studies. This paper aims to investigate the causes and effects of these delays and analyse whether these delays can be mitigated with a well-managed strategy. This study utilises a qualitative approach by first, conducting a critical review of the literature to analyse the causes and effects of construction delays. The study then conducts in-depth interviews with construction professionals to verify the industry’s position on this topic and to make recommendations about the mitigating measures. The interviewees sample represents a cross-section of the industry and its project roles. The key findings of a total of 12 interviews highlighted that ‘financial related effects’ are the most crucial ones that requires close scrutiny. Among the parties involved in a construction project, ‘client’ is in the highest risk of being penalized for these financial implications of delays. Although the contractor is generally required to try to prevent or mitigate delay, even where the fault is not their own, clients have the highest level of responsibility in delay-related decision making. However, depending on the procurement route this can vary. In terms of the causes ‘communication, coordination and planning’ reports as the highest contributor for to delays. The effects of these are mostly lost profit claims and delay and disruption claims. However, Building information modelling possesses a potential to mitigate the latter and. Nonetheless, the interviewees also highlight the need for training and awareness in above digital technology over traditional management practices, to perceive desired value.
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Madanayake, U., Toli, V. (2024). Underlying Causes, Effects and Mitigation Measures of Delays in Construction Projects. In: Li, D., Zou, P.X.W., Yuan, J., Wang, Q., Peng, Y. (eds) Proceedings of the 28th International Symposium on Advancement of Construction Management and Real Estate. CRIOCM 2023. Lecture Notes in Operations Research. Springer, Singapore. https://doi.org/10.1007/978-981-97-1949-5_131
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SCHEDULE DELAY ANALYSIS IN CONSTRUCTION PROJECTS: A CASE STUDY USING TIME IMPACT ANALYSIS METHOD
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Sep 16, 2020 · The construction law attorneys at Hendershot Cowart P.C. have a clear understanding of the critical elements of a breach of contract claim and regularly represent both defendants and plaintiffs in construction litigation. If you wish to discuss a potential construction delay claim or any construction legal matter, call (713) 909-7323 or contact ...
Mar 1, 2023 · A STUDY OF CONSTRUCTION DELAYS. March 2023; March 2023; 15(54):296-308; ... case studies, we ranked the significance of the various . causes of delay based on the responses we received from .
Feb 1, 2023 · For the last few decades, the construction industry went through many evolutionary changes due to technological improvements. Despite extensive scientific work and improved management techniques, construction projects are still unable to resolve multiple issues such as delays, conflicts, productivity loss, poor performance, coordination, and many more.
1.2 Construction Delay Analysis Delay is one of the common problems in the construction project. Delay of a construction project is defined as late completion of the project as compared to the planned schedule. Construction delays are often resulting of miscommunication between contractors, subcontractors, owners and suppliers.
Sep 30, 2023 · This study identifies and analyzes the main causes of construction project delays through a systematic review of existing literature, case studies, and expert interviews.
Dec 28, 2018 · project delay (Chiu and Lai, 2017); case studies analysing project delays; and comparative studies on project delays between different countries (Shebob et al ., 2012). Sambasivan and
Nov 28, 2024 · Causes of Construction Delays. Construction project delays can be initiated by any of the project’s stakeholders and can be allocated to a range of causes. A critical review of 27 studies was conducted with regard to the underlying causes of delays in construction and 11 themes of causes were identified.
ANALYSING CONSTRUCTION DELAY FACTORS: A CASE STUDY OF BUILDING CONSTRUCTION PROJECT IN LIBYA Shebob, A.1, Dawood, N. and Xu, Q. School of Science and Engineering (SSE), Teesside University, Middlesbrough, TS1 3BA UK. Delays are one of the biggest problems facing by the construction industry. The delays in construction projects have significant ...
Through the study case, this study has proposed an approach to calculate schedule impact from lost productivity. The study results will be a basis for developing a comprehensive delay analysis method considering lost productivity. Keywords: Lost Productivity, Construction Projects, Case Study, Delay Analysis 1. INTRODUCTION
In the present study construction project of forum sujana mall in Hyderabad has been selected as a case study for analyzing project scheduling and time delays. The “Time Impact Analysis Method” (TIA) has been applied to the study, PRIMAVERA® software in used to determine the construction schedule delay and also to measure the impacts of ...