Don't Delay: What You Need To Know About Delay Damages

It is bound to happen occasionally. A perfectly timed construction project hits an unexpected snag, leading to major financial repercussions. When an owner causes the delay, the parties may wind up in court to determine how to allocate damages — no easy task when a contractor's costs span multiple projects. This article reviews two ways to determine overhead allocations and discusses other damages contractors may seek.

How is Overhead Allocated?

Construction companies rarely segregate their overhead by project. This makes it tough when a delayed contractor seeks damages to cover some of its overhead costs.

Two types of overhead costs will require cost segregation or job-specific allocations: