How is a delay claim assessed in the construction industry?

A delay claim in the construction industry in Texas is typically assessed when a contractor is not able to complete their work by the anticipated date due to some sort of unforeseen event. In Texas, delay claims are assessed in accordance with the Texas Prompt Payment and Commercial Construction Act. This act provides that the contractor may be due payment for losses that arise from the delayed completion date, such as increased labor costs, loss of profits, equipment expenses, and rental costs. Additionally, the Act provides that the contractor may receive payment for any when any of the following conditions occur: delays caused by the owner’s breach of contract, interference by the owner which causes a delay, or the owner’s failure to act in good faith. Typically, the payment for a delay claim in Texas is based on a calculation of the total amount of damages, plus reasonable attorney’s fees, and other costs, such as the cost of materials. These damages may be paid out in a lump sum to the contractor or in periodic payments on a specified timeline.

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How is a delay claim assessed in the construction industry?

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