What Qualifies as a Delay Claim?

A delay claim is a formal request for additional time, money, or both when events outside the claimant’s control push the completion date beyond the contract schedule. Owners, primes, and lower-tier subcontractors can all assert such claims; each must show (1) a contract-recognized delay event, (2) impact to the critical path, and (3) resulting cost or schedule damage.

Why Delay Claims Matter

On a typical Texas project, each day of slippage can trigger liquidated-damages assessments, extended general-conditions costs, acceleration premiums, or lost revenue for the finished facility. For contractors, preserving entitlement and pricing is essential to cash flow. For owners, promptly addressing delay allegations avoids compounding interest, claims for constructive acceleration, and strained relationships.

Familiar Causes of Delay

• Unforeseen subsurface or utility conflicts uncovered after mobilization
• Owner-directed design revisions that ripple through the critical path
• Extreme weather exceeding the climatic baseline set in the contract
• Late material deliveries owing to supply-chain breakdowns or force majeure events
• Labor strikes or craft shortages on specialized trades
• Regulatory or permit hold-ups beyond the contractor’s control
• Upstream trade contractors falling behind and crowding the workface

Governing Legal Framework

• Contract clauses – Most Texas and federal contracts spell out notice deadlines, change-order procedures, and allowable delay damages. “No-damage-for-delay” clauses are generally enforceable in Texas, but courts will not shield an owner who intentionally or unreasonably interferes with progress.
• Texas prompt-payment statutes – Late owner approval of valid time-extension requests can expose public and private owners to interest and attorney’s-fee awards.
• Federal Acquisition Regulation – Delays on federal contracts flow through the familiar “Changes” and “Suspension of Work” clauses, with certified claims submitted under the Contract Disputes Act.
• Scheduling standards – Critical-path method (CPM) analysis is the prevailing evidentiary tool; recovery is rarely possible without a reliable baseline and contemporaneous updates.

Routes to Recovery or Defense

1. Change order – The cleanest resolution: price and grant a time extension before costs snowball.
2. Equitable adjustment – When the owner’s action or inaction drives delay, the contractor seeks added time and money under the changes clause.
3. Acceleration claim – If the owner refuses to extend time and insists on the original completion date, the contractor may recover premium labor, shift differentials, and inefficiency costs.
4. Liquidated-damages defense – A contractor facing assessment can offset with proof of excusable or concurrent delay attributable to the owner or force majeure.
5. Formal dispute – Unresolved claims proceed to mediation, arbitration, or court as required by the contract.

Best Practices for Contractors

• Embed clear delay language – Force-majeure, notice, and liquidated-damages provisions must be unambiguous and coordinated with downstream subcontracts.
• Maintain an accurate CPM schedule – Update it at least monthly; record logic changes separately to spotlight owner-caused impacts.
• Give timely written notice – Texas courts and contracting officers strictly enforce notice windows; “actual knowledge” is no substitute.
• Document the domino effect – Daily reports, photographs, manpower curves, and cost codes link cause, path, and price.
• Mitigate first – Reasonable acceleration, resequencing, or alternate material sourcing shows good faith and limits exposure.

Best Practices for Owners

• Set realistic weather and permitting assumptions in the contract.
• Respond promptly to RFI and submittal queues—silence fuels delay.
• Track schedule float ownership; avoid consuming contractor float with late design decisions.
• Evaluate delay claims objectively using independent schedulers before denying an extension.
• When fault is shared, negotiate partial relief to prevent a small slip from becoming a courtroom saga.

Connect With Us

Delay claims need not spell disaster. With precise contract drafting, disciplined scheduling, prompt notice, and open dialogue, most timing conflicts can be resolved at the change-order table rather than in a courtroom. When negotiation fails, a well-prepared record positions either side to prove or defeat delay liability under Texas law and federal contracting rules—turning lost days into equitable relief or a defensible denial.

For tailored assistance—whether crunching a CPM analysis, crafting notice letters, or litigating a multi-million-dollar delay dispute— our law firm can keep your project, and your rights, on schedule.

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