How to Handle Delays in Commercial Construction Disputes
Sep 5 2025 On Behalf of David M. Duree & Associates, P.C. Construction Law
Delays in commercial construction projects frequently lead to legal disputes between project/property owners and contractors. Parties may have various legal rights and options under construction law for handling delays in commercial construction that cause disputes. Understanding the steps you can take when a delay in a construction project occurs can help you protect your rights and interests.
Common Causes of Delays in Commercial Construction
Some of the most frequent causes of delays in commercial construction projects include:
- Weather-related issues, such as severe storms, extreme temperatures, or natural disasters like tornadoes or derechos
- Supply chain issues that lead to the late delivery of construction materials or the unavailability of specialized construction equipment
- Labor shortages or union strikes, which can make it difficult for contractors to find skilled workers or craftsmen
- Permitting or regulatory delays, including waiting for local or state government inspection or approvals
- Design changes or errors, including revisions to aesthetic designs or the discovery of engineering errors requiring changes
Understanding Your Contractual Rights and Obligations
When a construction project delay occurs, the first thing you should do to protect your interests is review your construction agreement to understand both sides’ respective rights and obligations under delay or force majeure clauses. Other contractual provisions you should review include:
- Project timelines and milestones to determine whether delays have caused the construction project to fall behind schedule
- “Time is of the essence” clauses, which can make delays a material breach of a construction contract
- Notice requirements, which may require parties to communicate delays or claims of default to preserve legal rights and options
- Payment terms and liquidated damages clauses, which may affect compensation when a delay results in a breach of project deadlines or a material breach of contract
Steps to Take When a Delay Occurs
Taking prompt action when a delay occurs during a commercial construction project can put you in a more favorable legal position. Some of the steps you should take include:
- Keeping detailed records of the dates when delays started and ended, the cause(s) of the delays, and their effects on the project schedule
- Communicating with stakeholders throughout the delay, including property owners, project managers, contractors, subcontractors, and materials suppliers
- Assessing your contractual remedies for a delay, such as an extension of deadlines or compensation/payment credits
- Taking steps to mitigate losses caused by a delay
- Negotiating with counterparties to obtain a settlement of a dispute before escalating to arbitration or litigation
Legal Options for Resolving Construction Delay Disputes
Commercial construction delays can lead to significant legal disputes between project/property owners and contractors, subcontractors, or equipment/materials suppliers. However, parties may have various options for resolving delay-related disputes. Construction contracts may include alternative dispute resolution provisions that govern how parties must address disputes. Typical options include:
- Mediation – In mediation, parties work with a neutral third party called a mediator, who helps each side understand the strengths and weaknesses of the respective positions and suggests solutions to assist the parties in negotiating a settlement.
- Arbitration – Arbitration provides a trial-like alternative that can resolve legal disputes more quickly than traditional litigation and allows parties to have people with expertise in construction decide those disputes.
- Litigation – In the absence of agreements to mediate or arbitrate, parties may submit legal disputes arising from project delays to court litigation.
Contact a Construction Law Attorney Today
When a delay occurs in your commercial construction project, hiring experienced legal counsel can help you protect your rights and interests. Contact David M. Duree and Associates, P.C., today for a confidential consultation with a construction law attorney to discuss your options when delays slow down or stop progress in your commercial construction project.