When you have a construction project in Michigan, delays in completing the project can cost you time, money, and peace of mind. A construction law attorney can help you understand preventative steps you can take to avoid construction delays and your legal options for relief when a delay occurs.
Common Causes of Construction Delays in Michigan
Some of the most frequent causes of construction delays for projects in Michigan include:
- Weather-related delays due to heavy rains or snowstorms
- Insufficient available labor
- Materials shortages or delays in deliveries
- Delays in obtaining construction permits or zoning/land use variances
- Delays in securing building inspections or identified violations that delay permit issuances
- Substandard work that requires repairs or revisions
Legal Remedies for Construction Delays
A developer or property owner who experiences construction delays on their project may have various options for seeking financial compensation or other relief for a delay. Common examples of legal remedies available in cases arising from construction delays in Michigan construction projects include:
- Negotiating with the Contractor – A project owner or developer can negotiate with contractors responsible for a delay to obtain remedies, such as a reduction in the contract price to compensate for losses caused by the delay.
- Pursuing Alternative Dispute Resolution – Construction contracts frequently include ADR clauses mandating mediation or arbitration of claims related to the project.
- Filing a Mechanic’s Lien – Contractors or subcontractors who do not receive timely payment due to project delays may file a mechanic’s lien on the project to secure their right to payment.
- Filing a Breach of Contract Action – When a delay materially breaches the construction contract, a property owner or developer may file suit to recover compensation for financial expenses or losses caused by the delay.
Parties experiencing a delay on a construction project should review the applicable construction contract carefully, as various clauses may affect their rights or options. For example, the contract may exclude the delay under a force majeure clause. Alternatively, the contract may give a party a more substantial claim if it includes a “time is of the essence” clause. Furthermore, the contract may include liquidated damages that specify the financial relief available for a construction delay.
Tips to Prevent Future Construction Delays
Property owners, developers, or other parties involved in construction projects can help reduce the risk of delays or the consequences of a delay by following best practices such as:
- Drafting clear, detailed contracts that have precise timelines, mandate on-time performance, and include express remedies that a party may pursue for a delay
- Vetting contractors to ensure they have the resources and qualifications to perform a project
- Maintaining an open dialogue with contractors to keep tabs on the project’s progress, including holding regular site meetings
- Including time buffers in project timelines to account for delays outside the parties’ control, such as adverse weather or supply chain issues
- Securing necessary permits as early as possible to avoid delays caused by administrative backlogs or unforeseen legal issues
Contact a Construction Law Attorney for Help
When your construction project has experienced delays, you may have the right to seek legal relief. Contact August Law, PLLC, today for an initial consultation with our legal team to discuss your options for pursuing compensation and getting your construction project back on track after significant delays.