A delay on a commercial construction project can stall cash flow and strain relationships between owners, contractors and subcontractors. When schedules slip or productivity drops, you may be facing a delay claim, a disruption claim or both. This article explains the basic differences and what the claims process can involve.
Delay claims versus disruption claims
A delay claim focuses on time. An event on the critical path may entitle the contractor to a time extension and overhead compensation. A disruption claim instead targets lost efficiency. Productivity can drop because of design changes, trade stacking or poor site access. This can happen even when the project finishes on time.
Notice and documentation requirements
Most construction contracts set strict deadlines for raising a delay or disruption issue. Missing a notice deadline can waive the right to claim compensation. This can happen even when the delay was outside your control. The following records can help support or defend a claim:
- Site diaries and daily reports: Track day-to-day site conditions.
- Correspondence and meeting minutes: Capture decisions and notice of issues.
- Schedules and change orders: Show how the project timeline shifted.
- Photographs and inspection reports: Document conditions over time.
These records can help establish what caused a delay and how it affected the schedule or budget.
How state law can shape delay clauses
Some contracts try to limit a party’s right to recover money for delay. This is often called a no damages for delay clause. These provisions are not always enforceable. Kansas Senate Bill 335 voids contract clauses that try to waive a party’s right to collect delay damages. The clause cannot be fully waived, even if the contract states otherwise. Laws like this can vary widely by state. The terms allowed in your contract may depend on where the project is located.
Putting these claims in context
Delay claims and disruption claims focus on different problems, even though they often appear on the same project. A delay affects the schedule, while a disruption affects productivity without necessarily moving the completion date. Strict notice deadlines, careful documentation and an awareness of state law can all affect whether a claim succeeds.
If a claim becomes contested or complex, an attorney may be able to help you understand your options.
