Delay & Disruption Disputes in Construction: Key Challenges and Common Claims
Date: 16 July 2025
Delays and disruptions are among the most contentious issues in construction projects, often leading to complex disputes over time extensions, cost entitlements, and responsibility. This post breaks down six common types of disputes—from Extension of Time (EoT) claims and procedural missteps to causation complexities, disruption costs, concurrent delays, and acceleration disagreements. Understanding these categories can help project stakeholders better manage risk, improve contract compliance, and resolve disputes more effectively. Here is a breakdown of these challenges:
1. Extension of Time (EoT) Entitlement Disputes
- Was the contractor entitled to more time?
- Disagreements over whether the delay was caused by the Principal, neutral events, or the contractor.
- Disputes over whether the contractor gave timely notice.
Example: A contractor claims an EoT due to late drawings; the Principal argues the delay was foreseeable and notice was late.
2. Notice and Procedure Failures
- Did the contractor follow the correct process for claiming delay?
- Most contracts require notice of delay events within specific time frame.
- Failure to comply can lead to rejection of claims.
Example: A contractor submits a delay claim months after the event, and the Principal rejects it for procedural non-compliance, which has prevented the Principal from the opportunity to mitigate the delay; for example, instruction to accelerate, or not proceed with the change etc.
3. Causation Disputes
- What actually caused the delay or disruption?
- Multiple overlapping events make it hard to pinpoint the cause.
- Contractors may claim cumulative impact; Principals may argue delays were concurrent or unrelated.
- Most contracts require the identification of each cause and the quantification of the impact of each cause.
Example: A site access issue overlaps with bad weather and contractor’s lack of readiness to access the site. The contractor claims full delay; the Principal argues only partial entitlement.
4. Cost of Disruption Claims
- Is the contractor entitled to compensation for disruption?
- Disruption refers to inefficiencies (e.g., stop-start work, resequencing).
- Hard to quantify and often disputed.
- Is cost of disruption claims covered in the contract?
Example: A contractor claims extra labour costs due to resequencing caused by late instructions. The Principal disputes the basis and amount and/or the claim is outside the contract.
5. Concurrent Delay Disputes
- Were there multiple delays happening at once?
- If both parties contributed to the delay, entitlement to time or cost may be reduced or denied.
- Did the delays occur at the same time, but their effect on the critical path was not felt at the same time.
- Did the delays occur at different times, but their effect on the critical path was felt at the same time.
- Most contracts do not explicitly define how to handle concurrent delays.
Example: A contractor is delayed by both late design changes and machine breakdown. The Principal argues that the machine breakdown is the only delay; the contractor argues the opposite.
6. Acceleration and Mitigation Disputes
- Was the contractor asked to accelerate, and are they entitled to costs?
- Disputes over whether acceleration was instructed or voluntary.
- Also disputes over whether the contractor mitigated delays properly.
Example: A contractor accelerates work to meet deadlines and claims extra cost. The Principal argues no formal instruction was given.