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What Can I claim for in a delayed project that has no site cost?

WashingtonConstruction Contract

I am a contractor and I have a project that has been standstill for long period due to reasons out of our control and acknowledged by the owner. During that period the site was left, and costs were encountered only as OH in the office for correspondence and meetings. Can we claim? We do not know what documents our client would ask for to compensate us as well. Is it possible to use the OH percentage from the contract value and calculate on daily basis? Ex: OH from contract value is 10%, contract value is 3,000,000 USD, Performance period is 320 Days. This means: OH is 3,000,000 X 10% = 300,000$ OH/DAY is (3,000,000/320 = 937.5$/Day) If the delay is 400 Days, Claim value would be 937.5 x 400 = 375,000 $ Please advise

1 reply

Feb 17, 2020
In many states, circumstances related to the ultimate (lack of) liability with respect to construction delays can be governed by the contract though "No Damage for Delay" clauses, however, Washington is one of the few states that have curbed their use. Washington has specifically enacted legislation that prohibits the use of No Damages for Delay clauses in RCW 4.24.360. In Washington, therefore, delays are generally categorized in one of two potential buckets: Inexcusable and Excusable delays, which are then broken down further depending on the cause or fault of the delay. An inexcusable delay is generally the fault of the contractor, and accordingly, the contractor is not allowed to recover any damages relating from such a delay. An "excusable" delay is generally a delay that is incurred due to forces beyond either parties' control. While significant costs may be incurred by the contractor if the delay is long enough, the contractor suffering through an excusable delay generally is not granted any compensation, but is allowed an extension of time to perform commensurate with the delay. If the delay is caused solely by the owner, however, the contractor may be able to recover damages in both compensation and extension of the contract. The contractor may not be able to recover when the contractor and the property owner are both responsible to some extent for the delay occurring. The amount recoverable may be actual damages or liquidated damages according to the contract, depending on the contract itself and its wording. Recovery of damages for delay, however, can be difficult, and if it will require probable litigation an attorney should be retained to provide assistance.
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