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Concurrent delay waiver

Hi, We are a small construction company mainly dealing with residential sector. Due to an understanding reason we hire subcontractors for variety of works. After last year's analysis we have come to understanding that most, if not all of our delays were caused by the subcontractors. Subcontractors are not always on time to do their work which leads the project to fall behind, increasing extra cost and clients dissatisfaction and therefore loss in profit. I would like to ask if there waiver template we can use which would oblige the subcontractor to be on agreed date and if they are not then they simply liable for the penalty or certain fee occurred due to the delay?

1 reply

Aug 7, 2019

That's an excellent question. Ultimately, delay provisions and available delay claims will usually come down to what's in the contract. And, rather than executing a separate waiver altogether, it might be more simple to just lay out how delays caused by a subcontractor will be treated right there in the contract. By putting clear delay provisions in the subcontract, itself - issues down the line can be accounted for, and having the process for managing and compensating (or not compensating) those delays set out from the beginning of the project will help avoid disputes when delays do occur.

But, by that same token, a contract could also create a system where concurrent delay waivers might be utilized where a subcontractor is actually the one causing the delay in the first place. Though, any attempt to put an unfair burden on a sub regarding delays out of their control might not be particularly successful, even if it's in the contract. While I'm not aware of where to obtain a template for such a waiver, consulting a local attorney and having them draft that documentation might be helpful.

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