Before a project begins, contractors work with owners to set the deadlines for each stage of that project. Those deadlines lead up to an agreed-upon completion date. A delay could mean receiving payment late or not getting paid in full, but it can also mean being held in default and being sued by the owner. If the delay is classified as excusable, however, the contractor has the right to be paid for the work they performed and is not in default of the agreement.
Any delay that is caused by an event that is out of the control of the contractor is considered an excusable delay. In this case, the contractor may also be entitled to additional time, money, or both depending on the agreement made.
Examples of excusable delays are:
- Force Majeure events (Acts of God) such as natural disasters, floods, and fires that create a dangerous or unsafe worksite.
- Owner-caused Delays such as if the owner asks for a last-minute design change in the project.
- Delays from errors in architectural drawings that require work to be redone.
In most cases, events and circumstances that constitute excusable delays are defined by a clause in the contractor agreement, including what the contractor is entitled to (for example, time extension or additional monetary compensation) if a delay occurs.
Even when a contract outlines the contractor’s right to an excusable delay, some property owners may still deny the time and potential compensation owed to the contractor. Contractors that experience an excusable delay can file a mechanics lien if they were wrongfully denied payment. Using this payment collection tool is the most effective and affordable way for contractors to defend their rights.
