Delay and Disruption Costs:

Delay and disruption costs are the additional costs that may have been incurred by contractors as a result of a delay caused by the principal (person hiring the contractor). Delay and disruption costs are often dealt with in the construction contract, which may provide remedies in circumstances where a delay has been caused directly by the principal. The contract may expressly and specifically envisage agreed damages or delay damages to be paid to the contractor (sometimes done by adjustment of the contract price) so as to compensate the contractor for losses incurred as a result of the delay.

Delays not caused by the principal are addressed separately. In many construction contracts, these are dealt with by allowing an extension of time to complete the construction works. Where the construction works are still not completed after the extension of time, it might be possible for the principal to claim liquidated damages for the delay in completion. 

In circumstances where the contract fails to address delay damages or costs, it might be possible for the contractor to make a claim via Court proceedings. This can quickly become quite complicated and the assistance of an experienced Sydney Construction Lawyer or Building Disputes Solicitor is recommended. 

Our Sydney Construction Lawyers have extensive experience assisting contractors, builders and owners, with the complicated issues arising from delays and disruptions. Particularly, our Lawyers understand that a carefully drafted construction contract is crucial to the avoidance of costly litigation. Contact our firm by telephone on (02) 9233 4048 or send an email to info@navado.com.au to arrange a consultation with an experienced Construction Lawyer. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.