Construction delays can cause significant problems for property owners and contractors. In Georgia, those affected by these delays have legal options to recover losses or enforce contract terms.
Understanding these options helps you protect your financial interests and ensure project completion.
Reviewing the construction contract
The first step involves reviewing the construction contract. Most contracts outline specific timelines, project milestones and consequences for delays. If there is a violation of the construction contract, the affected party may seek remedies through the contract’s dispute resolution process. Many contracts include clauses addressing liquidated damages, which impose financial penalties for late project completion.
If the contract does not address delays clearly, Georgia law still allows the affected party to pursue compensation. However, the contract’s language plays a critical role in determining the strength of any claim.
Seeking damages for financial losses
Construction delays often result in financial losses. Georgia law allows those affected to seek compensation for these losses, which may include additional costs for temporary housing, lost business opportunities or increased project expenses. To pursue these damages, it is necessary to show how the delay caused specific financial harm.
In some cases, the responsible party may claim unforeseen circumstances caused the delay. However, if the delay resulted from negligence, poor planning or breach of contract, Georgia courts may award damages to the injured party.
Using Georgia’s prompt payment law
Georgia’s prompt payment law provides additional protection for contractors and subcontractors. This law requires timely payments once work is complete. If a construction delay causes payment issues, the damaged party may pursue legal action to recover owed amounts.
For property owners, this law provides a tool to enforce work completion. Withholding payment until resolving the delay can encourage the responsible party to meet project deadlines.
When informal resolution efforts fail, filing a breach of contract claim may become necessary. Under Georgia law, the affected party may seek both monetary damages and specific performance, which requires the responsible party to complete the project as agreed.
