In the realm of construction and engineering, it is not unusual
for project completion to be delayed. This can be a consequence of
many things, such as disruptions in the supply chain, shortages of
materials or even political interference. Project delays can be
extremely problematic for both parties, and once they arise, it
begs the question – who is responsible?
Delay damages are the damages to which an employer is entitled
in the event of delay to the completion date, for which the
contractor is responsible.
Let us consider a case study, Project X, to understand what to
avoid when applying delay damages.
Project X had an original completion date of 18 months, with
delay damages capped at 10% of the project cost. Project X
encompassed many key challenges; notably, the geotechnical report
provided by the Employer during the tendering process which proved
to be inaccurate, leading to a 300% increase in rock excavation
quantities, and encountering significantly
