What Are Owner-Caused Delays Claims In Construction?

The success of construction projects depends on the coordinated efforts of all involved parties. In a case that any individual or party shows a lack of interest or delay the due-contribution, it may lead to claims in construction. In this regard, the owners play a significant role in managing the projects for in-time delivery. 

Unfortunately, owners may show a sign of negligence while handling construction projects. It usually causes delays, and the contractor may request for time-extension or damages compensation. In worse cases, the claims may lead to the suspension or cancellation of the projects. 

Are you dealing with a construction project? Get some useful insights about the owners’ role and responsibilities and owner-created situations that may hinder the project execution as per the plan. Keep reading!

Definition of owner-caused delays?

A disruption in the construction project that was caused by the project owners is referred to as owner-caused delay claims. Generally, the owners are responsible for playing a critical role in the successful completion of the project. However, negligence or an attitude of ignorance can lead to claims in construction.

Owner generated situations that result in delay claims 

Nevertheless, the construction projects are the outcome of a coordinated struggle carried out by the contractors and project owners. The two are the most critical players of the project. In some cases, the project owners may not be able to play their due role in the project’s progress, creating certain situations for delaying or disrupting the typical construction process. 

Let’s consider these situations briefly to identify the risks of claims in time for optimal management and claims avoidance:

Unclear project scope documents

The owners are responsible for providing project scope documents at the time of project bidding. A document containing unclear project requirements can lead to a delay at the later stages because the contractor may have to deal with the changed project scope. 

In other cases, the provision of inadequate scope documents may increase the cost of project completion. For such a situation, it is essential to acquire the services of an experienced construction quantum expert for analysis and estimation of required time and financial resources. The owner may have to pay the additional cost as it was his/her mistake. 

Less time is given for bid planning 

Generally, the owners should provide adequate time to the potential contractors for understanding the scope of the project. However, a few owners delegate less time for understanding the project requirements, which may lead to a delay at the later stages of construction. 

It is owing to the reason that contractors must understand each and everything related to the project before making a bid. For this purpose, considerable time is required to comprehensive the requirements and expectations of the project owners for successful completion. Don’t make haste when it comes to megaprojects, as it can be a collective loss after project assignment. 

Plenty of changes requested during construction 

It is one of the most critical aspects of construction projects. If the owners are demanding and keep on making changes rapidly in the project, the contractor may face trouble in accomplishing the project in time. It significantly leads to a delay. 

Therefore, the owners must understand their responsibility to consider the change order process in the construction for better management. You can also get assistance from construction management consultants to mitigate the risks associated with sudden changes in the project as required by the owners. 

Delay in Owner-furnished resources 

The owners have a desire to furnish their desired equipment and other procurement, which may take a considerably longer time. For example, power plants, substance plants, and processing plants and other such equipment need to be used as per the direction of the owners, as a result of great buying concurrences with merchants or the exceptional needs connected with such activities. 

Most of the project owners neglect to comprehend that contractual workers have explicit materials the board plans for the construction activities. So, the owners may mixed up conviction that at whatever point proprietor provided material shows up on the site, the contractual worker can effectively store or introduce the elements. It potentially leads to high-cost delays claims in the construction. 

Underestimated financial assets required for construction 

Last but not least, it is essential to estimate the overall project cost while keeping the market rates for the materials, workforce and other elements required for construction. Besides this, the ratio of inflation must be kept into consideration for calculation is the cost of everything needed for project completion. 

Sometimes, the owners may make a mistake of underestimating the project cost, which may lead to the potential delays at the later stages. In such a situation, you must hire an experienced quantum expert for estimations and delay analysis to resolve the claims peacefully. Don’t forget to negotiate the disturbance caused by a lack of estimation skills for getting on the same page of problem identification!

Learn your responsibilities to avoid construction delays!

Summing up, every contracting individual or party should understand their role in the construction project for accomplishing the project successfully. In this regard, the responsibility of the owner is critical as he has to supervise the project while assisting the contractors progressively. Don’t forget to adopt a proactive approach to construction project management!

Write a Comment