No matter how well you think that you have prepared for a project, you have to at least think about how you will address delays and cost overruns. There are all sorts of things that can cause delays on even the most well-planned projects, and your firm needs to be ready for them and legally protected. Our Houston construction contract lawyers may be able to help you with this.
Do I Really Have to Worry About Delays and Cost Overruns?
You know what you’re doing. Your company employs a lot of talented people. Most importantly, you are committed to getting the job done on time. Do you really have to worry about delays and cost overruns?
The unfortunate truth is that your skills and knowledge are not the only things that matter here. Many sources of delays are simply out of your control. That means you need to prepare for these possibilities and do your best to control the uncontrollable.
What Are Some Common Causes of Delays and Cost Overruns?
These are some of the factors that can cause delays and cost overruns:
- Inclement weather
- Scope creep
- Major changes in material or labor costs
- Poor time management
- Financing difficulties
- Poorly done estimates and assessments
- Regulatory and permit issues
- Labor strikes
Some are hard to predict, but others can be prevented with a good risk management strategy.
How Can Delays Cause Cost Overruns?
Delays can mess with the timetable for a project, and this usually causes two expenses in particular to rise. The first is labor costs. You have workers out on the job site for longer than expected, so more money is being spent to pay them. Second, you have the costs of materials. Some materials fluctuate in price and even a week or two of delays can result in having to recalculate how much you need to spend on crucial building materials.
What Can I Do to Prepare For These Issues?
The key parts of your strategy are identifying potential risks and staying in communication. Know exactly what kinds of things can end up delaying your project and causing costs to rise. You should take a constantly evolving approach and make sure that you are accounting for new risks as they emerge. This also means not signing any contracts that would be so stringent and punishing in the event that unforeseen elements cause a delay.
Solid communication skills can also help make a difference here. If all project stakeholders are kept in the loop and informed of problems, that makes it easier for everyone to adapt and deal with delays in their own way. Anyone who is left out of important conversations is going to, rightfully, have some issues with you.
Talk to Our Construction Industry Attorneys
If you want to learn more about how our lawyers can help you protect yourself and avoid legal headaches, contact Patout & Shaw. We look forward to helping you with any of your legal needs.
