How to Document Delays to Construction

With the large amount of money at stake, construction litigation is commonplace.

Thorough documentation becomes very important to all parties involved in a construction project if delays and added costs land owners and construction companies in court. Whether you are the owner who is being asked to foot a higher bill, or a construction company manager worried about being paid, the key to winning in court is having documentation to justify your position. In most states, the contractor pays the delay costs unless he can prove that the reason for the delay is justified.

Instructions

1. Establish a filing system for all paperwork related to the project. Keeping accurate and complete records for the project is essential for the owner and construction company. Both parties should keep the purchase contract as a guide for the project, because the contract is key for documenting delays in construction.

2. Keep detailed records including dates and times of all conversations and communication dealing with delay issues. Both owners and construction management should keep this information on hand until the project is complete to the satisfaction of both parties. When a critical delay occurs, a separate folder should be started for all related information pertaining to that delay. Detailed information about how specific construction delays impact other tasks and labor costs should be recorded.

3. Document project progress with photographs and videotapes. Both the owner and construction company should take multiple photos and record the construction progress in detail.

4. Maintain detailed payroll and expense records. With labor as the single biggest cost on many projects, payroll records showing that the original bid may have been too low is key for proving disruptions or a delay in construction to justify increased costs. Documenting all expenses is also important in the event that delays require a construction company to defend its actions in court.

5. Keep a project diary that contains daily entries elaborating on all aspects of the project and on-site conditions. The construction site manager or superintendent is the best person to document the project. Add details to the diary such as as weather conditions, material deliveries, surprise discoveries of unanticipated site problems or conditions, critical discussion, plan discrepancies, subcontractors and employees on site and any other event that might impact the project.

6. Maintain and update job cost reports and estimates. Construction company records should reflect cost spikes created by changed site demands.

7. Keep the original bid information and design specs provided to win the job to use in court if necessary. If a construction company is forced to defend increased costs, showing that the original bid was underestimated can help a construction company's case any time that changes were required due to no fault of the company's.

References

• Find Law: Construction Project Documentation: A basic Checklist of Documents That SHould Be Maintained to Prove a Construction Claim
• Wolfe Law Group: Dealing With Delays During Construction
• Scholefield Construction Attorneys: Delay Claims: Is Time Money