Working Construction Equipment On A Construction Site. Laying The FoundationConstruction contractors often cannot predict factors that will affect their work schedule, such as weather delays or a delay in obtaining building materials to complete a project.

Construction delays can have a significant impact on both construction contractors and clients, causing disruption to project timelines, budget constraints, and legal implications. For contractors, delays can increase project costs, decrease productivity, and damage reputations in the industry. A delay in one project can have implications on future bids and project opportunities, which may result in lost revenue for the contractor. Clients may experience significant financial losses due to penalties for late completion, operational closures, and lost revenue from delayed project delivery. Delayed construction projects can also harm a client’s reputation, leading to a loss in investor confidence, damage to public relations, and a potential loss in future business opportunities. Moreover, construction delays can also impact the construction workers’ safety, as the site can become more hazardous and require further safety-related inspections and costs.

Clearly, such delays can be costly, and construction contractors need an insurance policy to adequately cover this type of liability. A construction delay can result in disgruntled customers who may take legal action.

Even “Acts of God,” such as a natural disaster outside of a contractor’s control, may bring liability issues to your contractor clients who are held to the stipulations of a legal contract. After a delay, it is hard for a contractor to make up lost time even if they manage to have their employees work extra shifts.

There are a few preventive measures contractors can take to prevent construction delays. These include having carefully vetted design plans, having a backup plan to cover potential setbacks, and choosing subcontractors with a good reputation or those with whom they have worked before.

Contractors cannot rely on the good nature of their clients to understand why a construction project must be delayed. The best practice for construction contractors is to find professional liability coverage to protect their legal interests and business assets. A construction general liability policy will provide protection to contractors against delays in construction, including plans that are defective, theft of tools, equipment, or supplies, or damage caused by weather events.

We have a construction general liability package to take care of your construction contractor clients and all of the unique risks they face on a daily basis. Contact C&S Specialty Underwriters to discuss coverage options.