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Recovering Construction Contractor Disruption Costs

On Behalf of | Apr 4, 2014 | Business Construction Law

If there’s one thing every person in the construction business knows, it’s that you can expect delays in completing any project. But those delays aren’t always the result of a negligent contractor, or unexpected costs. Sometimes, an owner or lead contractor can create delays by significantly changing a project or by not providing the proper working conditions. Disruptions like these may entitle a contractor to be paid for additional costs incurred as a result of the disruption.

If you’ve had to cover costs resulting from owner or contractor disruption, a construction law attorney may be able to help you recover those costs.

In legal terms, disruption is a loss of productivity, disturbance, hindrance or interruption to a Contractor’s working methods that results in lower efficiency. Anything from worksite over-crowding to improper shift coordination can result in slow work or ineffective work that increases costs to contractors and reduces productivity. To the extent that these costs can be calculated, and an offending party can be properly identified, a contractor should be able to recover those costs.

Of course, most standard form contracts do not contain terms providing for recovery of disruption losses. A right to recovery may still exist, however, in the generally implied term that an owner or contractor will not hinder the contractor in the execution of its work.

Whether or not your contract has terms providing for disruption costs, you may still have a claim. You should contact a construction dispute attorney who can analyze your construction contract with you to determine your rights.