The Contractor and Unreasonable Delay

We have all heard how construction/renovation projects take longer than we think they will. How you're lucky if they're done by a certain date. How you should be thrilled if your contractor actually shows up. The question is, when is delay par for the course, and when does it rise to the level of unreasonable or become actionable (resulting in an actual claim against the contractor)?

Of course, the place to start with all of this is the actual contract. Homeowners and contractors should spell out how often the workers will be on site and for how many hours. There should be minimums, and everyone should be clear about managing expectations. As an aside, a person should always be designated as the point person for the job when the contractor is not on site. Both sides should know what that person's authority is, and how to reach the GC if that person is not authorized to make decisions.

What should a homeowner do, however, when it is clear the project is not on track; that it will not be finished anywhere near the completion date listed in the contract?

The answer is quite straightforward, but it does not usually occur to homeowners to try to work things out with the contractor. They feel helpless and like sitting ducks with a home that is fully gutted. The homeowner should request a meeting with the contractor. They should sit down with a calendar and map out work to be done each week with specific dates of completion. The deadlines should be short so the homeowner will know right away if the contractor is going to follow through. Then, there should be a penalty built into the agreement. If the contractor breaches the agreement, there should be an understanding that there is a monetary penalty, and/or that the contractor is in breach and that the homeowner has the right to terminate the contract. It should be stated that this addendum is now incorporated into the contract. Both parties should then sign off on the agreement.

In this way, the homeowner can take back control over her project. The contractor will no longer have free reign over when and if he shows up. The homeowner will know that he will win no matter what, because the work will either be completed, or, the homeowner can terminate the contract without fearing repercussions for illegal termination.

Additional factors to consider may include stating who will show up and when, whether intermittent inspections will occur, and what kind of damages will ensue if the work is found to be substandard. Substandard work and delay frequently go hand in hand, but that is fodder for another posting.

Comments

Unknown said…
Hi Andrea, being involved as a professional in the building trade almost 30 years means nothing today for trying to schedule custom work because of extraordinary delays from even the best suppliers with the exception of standard remodeling materials.(framing wood , drywall, etc.)
If I need a few pieces of walnut milled for a small cabinet, or glass panels for a sunroom , or the actual color and style of tile ordered or stainless or brass rails or any of a large number of high end custom building materials; no one wants to carry stock of these items in their inventory these days and this hurts the high end trade and users. Everyone takes your order and gives you a delivery date that can be many months late in arriving and if there is a problem (broken, wrong color, wrong style )you can be realistically set back a year or more. Customers don't want to hear this and we don't blame them so we now have contractual clauses about delays due to suppliers false delivery promises (while they hold your money) I now only pay upon complete delivery whenever possible especially for tile and custom colored appliances. I am fortunate that my clients rely only on personal financing and not banks, but
how can we operate and keep a schedule when suppliers are afraid to carry anything but the most popular high sales items. thanks for the forum. DS
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Good article, read with great interest.
How do you handle this? I am doing a job for a customer. Contract says a certain amount for a deposit, a second amount for a deposit at start and remainder at completion.

The initial deposit was made and a week after the job has started, no second deposit.

Is this a breach of contract and should work be stopped until second deposit is made?

Your thoughts would be appreciated.
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