Associated General Contractors’ Blueprint Magazine Article: Construction Schedule Delays & Legal Considerations

In short, this article addresses construction legal issues Arkansas and abroad related to construction contract delays. The article, which is titled A Day Late and a Dollar Short: Construction Schedule Contract Clauses and Delay Disputes, is in  AGC's Blueprint Magazine, Issue 2017.3. As an Arkansas construction attorney, I see these issues all the time. Here is a summary of the article:

If a construction project achieves substantial completion after the scheduled completion date in the construction contract, these “day late” costs are sure to exceed a dollar. In truth, the actual or liquidated damages range could be $1,000 a day to $100,000 a day.

Parties to commercial, energy, industrial, and infrastructure construction contracts agree to completion dates. The contractor’s failure to complete the project on time will usually subject the contractor to actual, consequential, and liquidated damages – this in addition to the contractor's not timely receiving progress payments, payments from milestone achievement, or retainage (retention amounts associated with substantial completion).

Owners, contractors, and subcontractors should consider two things:  First, the contract provisions, which is negotiated before construction begins; and Second, the delay claim, which occurs after construction ends. This AGC article provides information to assist the parties in better understanding schedule risks related to construction contract clauses and delay disputes.

The article is located at:

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