Time Is Money on Construction Projects and Categories of Delay

March 04, 2025 — David Adelstein - Florida Construction Legal Updates
As we know on construction projects, the adage “time is money” always applies. It applies to contractors just as much as owners. If a project is delayed, a contractor incurs additional overhead costs known as general conditions and general requirements which are driven by time. Similarly, an owner experiences its own delay damages driven by time which can be in the form of loss of use, increased or additional financing, and increased or additional consulting (architect/engineering) costs. From an owner’s perspective, an owner’s damages are oftentimes captured in a negotiated liquidated damages clause designed to capture owner’s delay damages by liquidating the daily amount. A contractor typically would prefer liquidated damages versus the unknown and uncapped exposure of actual damages which could be astronomical depending on the project. A contract could also include a stipulated daily rate for the contractor’s delay damages (general conditions and general requirements) which a contractor may or may not want to negotiate and include. Regardless, this all stems from the adage “time is money” which means what it says to all parties on a construction project. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com