Covid-19 – Update – Delay Claims: Read Your Contract Carefully!

A delay claim is made by one party to a contract, against another party to the contract, for the second party's failure to carry out the contract in a timely manner, or for otherwise holding up the contract. For example, a landlord could have a delay claim against a contractor for failing to complete a project on time, resulting in lost rents.  On the other hand, the contractor may have its own delay claim against the landlord for a variety of delay events. For contractors, delay claims may arise out of stop work orders, shortages of labour, shortages of supplies or unforeseen events. With the current COVID-19 epidemic and the Government of Ontario's recent order that certain types of construction projects shutdown, there will undoubtedly be delay claims.