DELAY DAMAGES:
Can I Get Them? If So, What Can I Get and How Do I Prove Them?

1. INTRODUCTION
2. CAN I GET THEM?
   1. Excusable
   2. Inexcusable
   3. Concurrent
3. WHAT CAN I GET? Contractor's Perspective
   1. Contractual Issues to Consider
   2. Types of Damages Recoverable/Sought to be Recovered
      1. Direct Costs
         1. Mobilization/Demobilization
         2. Idle Time/Equipment
         3. Extended Office Overhead
         4. Increased Labor and Materials
         5. Loss of Productivity/Efficiency
      2. Consequential Damages: Loss of Profits
         1. Delayed Project
         2. Other Projects: Loss of Business
4. HOW DO I PROVE THEM?
   1. General Elements
   2. Methods Used
      1. Total Cost Method
      2. Modified Total Cost Approach
      3. Measured Mile Approach
      4. Individual Impact/Segregated Cost Method
   3. Special Considerations
      1. Home Office Overhead/Extended Overhead
         1. Eichleay Formula
         2. Field Office Overhead
      2. Loss of Profits
         1. Delayed Project
         2. Profit On Other Projects
5. WHAT CAN I GET? - Owner's Perspective
   1. General
   2. Damages Recoverable
      1. Liquidated Damages
      2. Direct Damages
      3. Indirect Damages
6. HOW DO I PROVE THEM?
   1. Liquidated Damages
   2. Actual Damages
7. CONCLUSION

Abstract

Though most construction projects have set deadlines and a fixed price, we all know that most projects usually end up with some amount of changes to the scope, the price and the completion date. If these changes are not agreed, and the project is inexcusably delayed by either the owner or contractor, the result is a claim by the delayed party for excess costs or impacts. These claims can involve the architect, owner, contractor, subcontractors, materialmen and sureties. However, due to the limits of time, and in an effort to save the rain forest, this presentation will be limited to claims and disputes between the owner and contractor.

Though you may have the right to recover delay damages, proving them are difficult and costly. The key is to recognize a problem as early as possible, and keep good records. If the problem is brought to the attention of the responsible parties early enough, the dispute may be avoided for the most part. Short of avoiding the fight all together, there is no substitute for good record keeping.

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