This article aims to provide a comprehensive overview of construction delay analysis. By understanding the key concepts delay analysis, you can effectively identify and manage delays, improve project outcomes, and avoid any potential legal disputes
Construction delays are common, and they can have significant impacts on the project timeline and budget, which in turn can have legal implications. It is important to consider any delays which might arise in a construction project.
What is construction delay analysis?
The three fundamental essential elements of any construction contract are PRICE, TIME and SCOPE. Price and Scope are often only perceived as required by contracting parties, without any serious consideration for TIME.
Why is TIME consideration so important?
Time is money, so on any construction project it is little wonder that often when a project is delayed or delivered late, a construction dispute will arise. Imagine the Client procuring a building where they will lose £30,000 per week in lost revenue when they do not get the building on time, and likewise the builder who claims the client has been the cause of delay and, as a result, is losing £30,000 per week.
What happens if a construction delay occurs?
If construction delays occur, to satisfy the burden of proof, the contractor must notify the Client and keep good records of the impact each event has on the programmed construction works. The contractor should make an “Extension of Time” claim as works proceed and the substantiation behind this process is called ‘Delay Analysis’.
Under the Standard Form of Contract there are normally “mechanisms” in place to extend time and the responsibility for assessing this is with the Employer or their representative. If the Employer doesn’t deal with construction delays seriously, it can lead to huge liabilities later in adjudication. It is common practice for Employers to amend the construction contract provisions and contractors should be aware of the implications of these, particularly if they claim to be a “condition precedent”.
When delay analysis should be used
The delay analysis should be deployed throughout the construction process, creating “contemporaneous evidence”. The contract mechanism must be adhered to, so as to reduce the risk of loss or dispute. Delays can be caused by either party, the offender paying for it, however there are “neutral events” where nobody is to blame and cases where both parties are to blame, often known as concurrent delays.
Careful management, record keeping and an understanding of all the factors and risks which can impact on time or result from delay, must be considered in managing any construction project effectively.
The importance of records
As work proceeds, it is important to manage the time with records, and to understand how an Adjudicator is likely to deal with the claim, whether by a critical path analysis or otherwise.
Although common sense may prevail it is recommended that a clear understanding of the concept of time management for any construction project, a clear chronology of events recorded and all the risk factors that can arise be appreciated to avoid unnecessary losses and disputes.
Arbicon are experts in dealing with Delay and Extension of Time issues. Arbicon can prepare or defend quantum time claims using Delay Analysis and dealing with any time issues in adjudication proceedings.
Please contact us on advice@arbicon.co.uk or contact Arbicon at any of our 4 offices below.
01733 233737 Peterborough
020 8610 1724 London:
0121 262 4086 Birmingham:
0113 512 9004 Leeds
