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ARTICLE · 04 AUGUST 2014

What To Expect When You Are Expecting Construction Litigation

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Delays in construction projects can lead to a cascade of negative financial repercussions for both owners and their contractors.

United StatesReal Estate and Construction
Jeffrey Newman
Jeffrey Newman
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Delays in construction projects can lead to a cascade of negative financial repercussions for both owners and their contractors. The parties may even wind up in court.

Calculating damages in these cases can prove especially tricky when an owner causes the delay. Why? Because a significant portion of a contractor's costs will need to be allocated among multiple projects. Fortunately, a qualified financial expert can help.

Two Overhead Allocations

A delayed contractor will likely seek damages to cover some of its overhead costs, but construction companies rarely segregate overhead by project. Two types of overhead costs will require cost segregation or job-specific allocations:

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