Construction Delays and Project Disruption Claims in Texas

Delays and disruptions are common in construction projects, but they often result in financial loss, strained business relationships, and legal disputes. In Texas, construction law provides a framework for assessing responsibility for delays and determining whether compensation is owed.

This page explains the legal issues related to project delays and disruptions, including common causes, proof of damages, defenses, and how to manage claims effectively.

1. What Is a Construction Delay?

A construction delay is any event that extends the time required to complete a project. Delays can impact the entire job or just certain phases and may be caused by one or more parties.

There are three general categories of delays:

• Excusable delays – Caused by events outside the contractor’s control (e.g., weather)
• Non-excusable delays – Caused by the contractor’s own fault or mismanagement
• Compensable delays – Caused by the owner or other party, and may entitle the contractor to more time and money

The classification of the delay determines whether the affected party is entitled to a schedule extension, financial compensation, or neither.

2. Common Causes of Project Delays

Delays in Texas construction projects may arise from:

• Late or incomplete design plans
• Permitting or inspection hold-ups
• Material shortages or delivery problems
• Weather or natural disasters
• Poor site coordination or mismanagement
• Change orders issued late in the project
• Labor shortages or subcontractor failure
• Owner-caused interference

Each of these scenarios can trigger different legal consequences based on the contract terms and delay documentation.

3. What Is a Disruption Claim?

A disruption claim is different from a delay claim. It involves interference with the contractor’s productivity rather than the project’s overall schedule. Examples include:

• Re-sequencing work without warning
• Crowded job sites
• Poor coordination between trades
• Constant design changes
• Site access limitations

Disruption claims are often harder to quantify than delays, but they can still lead to lost profits and increased costs.

4. Contract Clauses Related to Delays

Most Texas construction contracts contain provisions that address delays and disruptions. Important clauses include:

• Force majeure – Excuses performance for events beyond control (e.g., extreme weather)
• Liquidated damages – Pre-set daily rate for delay-related damages
• No-damage-for-delay – Bars recovery of financial compensation for certain delays
• Time is of the essence – Emphasizes deadlines as material terms
• Extension of time procedures – Details notice and approval requirements

Contract compliance is key to asserting or defending delay-related claims.

5. Proving a Delay or Disruption Claim

To succeed in a delay or disruption claim in Texas, the claimant must typically show:

• That a delay occurred
• The cause of the delay and who was responsible
• That the delay caused additional costs or time
• That the contract procedures for notice and claim submission were followed

Supporting evidence may include:

• Updated project schedules
• Daily reports and time logs
• Emails or RFIs
• Expert schedule analyses
• Cost records showing overtime or inefficiency

Failure to follow the contract’s notice and documentation requirements may result in denial of the claim.

6. Defenses Against Delay Claims

Owners and general contractors facing a delay claim may assert several defenses, such as:

• The delay was concurrent with the contractor’s own delays
• No notice of delay was provided as required
• The delay was excusable but not compensable
• Damages were not properly documented
• Delay was caused by subcontractor issues not attributable to the owner

Concurrent delays and failure to mitigate damages are among the most common defenses.

7. Delay Damages and Compensation

A party who proves a valid delay or disruption claim may recover:

• Extended general conditions (e.g., trailer, supervision, insurance)
• Overtime labor or acceleration costs
• Lost productivity damages
• Equipment rental expenses
• Profit loss in some cases

Claims for consequential damages (e.g., lost revenue from delayed tenant occupancy) are often limited or excluded by contract.

8. Liquidated Damages

Many construction contracts include a liquidated damages clause that assigns a fixed daily amount for delays. In Texas:

• Liquidated damages must be a reasonable forecast of actual damages
• They cannot be a penalty
• They may be enforceable even if no actual loss is proven

If the contractor causes a delay, the owner may deduct the agreed-upon amount from final payment. Courts will enforce liquidated damages clauses unless they are unreasonably high.

9. Time Extensions and Force Majeure

Contractors facing excusable delays must typically request a time extension in writing. Common reasons for extensions include:

• Severe weather
• Supply chain disruptions
• Unforeseen site conditions
• Changes to the scope of work

Failure to request an extension in accordance with contract terms may waive the right to relief. Force majeure events must usually be well documented and promptly reported.

10. Best Practices for Delay and Disruption Management

Avoiding delay disputes begins with good planning and communication. Consider the following:

• Use realistic project schedules
• Document changes, delays, and problems daily
• Follow contract procedures for notice and claims
• Include detailed delay clauses in contracts
• Engage scheduling experts for complex claims
• Seek legal advice before a small delay becomes a legal dispute

Proactive contract management can prevent minor disruptions from escalating into litigation.

Conclusion

Construction delay and disruption claims are complex but common in Texas. Whether you are seeking compensation for lost time or defending against a delay claim, success depends on contract compliance, detailed records, and timely action.

At Guerra Days Law Group, we assist contractors, developers, and owners with resolving scheduling disputes and protecting their rights under Texas law. Contact us today to schedule a consultation.