What to Do When a Contractor is Taking Too Long: A Guide for Clients

Hiring a contractor for a project is a significant investment, and delays can cause frustration, additional costs, and disruptions.

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It's crucial to know what steps to take when a contractor is taking too long to complete a project. At LawPassport, we offer legal guidance to help you navigate these situations effectively. Here’s a comprehensive guide on what to do when facing delays from a contractor.

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1. Review the Contract

Start with the Terms You Agreed On

• Clear Terms and Deadlines: Ensure that your contract includes specific timelines, deadlines, and milestones for the project. A well-drafted contract should outline the expected completion date and the consequences of delays.
• Milestone Payments: Structure payments based on the completion of specific milestones. This can motivate the contractor to stay on schedule.
• Damages for Delays: Include clauses that specify damages or penalties for delays, such as liquidated damages, to compensate for any inconvenience or financial loss caused by the delay.

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2. Communicate with the Contractor

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Open Lines of Communication are Key

• Express Concerns: Communicate your concerns about the delay with the contractor directly. There might be legitimate reasons for the delay that can be resolved through discussion.
• Request a Revised Schedule: Ask the contractor to provide an updated timeline for the project completion and ensure they commit to this revised schedule.

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3. Document Everything

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Keep Detailed Records

• Written Records: Document all communications with the contractor, including emails, text messages, and written correspondence. This documentation can be crucial if legal action becomes necessary.
• Progress Reports: Keep detailed records of the project’s progress, including photographs and written reports. This will help you track the work completed versus what was promised.

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4. Issue a Formal Notice

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Escalate Your Concerns Formally

• Notice of Delay: Send a formal notice to the contractor regarding the delay. This notice should reiterate the agreed-upon deadlines and outline your concerns.
• Request for Action: Clearly state what actions you expect the contractor to take to address the delay and provide a reasonable deadline for a response.

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5. Consider Alternative Dispute Resolution

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Resolve Disputes Without Litigation

• Mediation: Propose mediation as a way to resolve the dispute amicably. Mediation involves a neutral third party who can help facilitate a mutually agreeable solution.
• Arbitration: If mediation fails, consider arbitration. This process is more formal and binding but is often faster and less costly than going to court.

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6. Withhold Payments

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Use Payment as Leverage

• Milestone Payments: If your contract includes milestone payments, you can withhold payment for incomplete milestones. This can motivate the contractor to complete the work promptly.
• Retainage: Hold back a percentage of the total payment until the project is fully completed to your satisfaction. This retainage can act as a security deposit to ensure completion.

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7. Terminate the Contract

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When All Else Fails

• Contract Termination: If the contractor continues to delay without reasonable justification, you may have the right to terminate the contract. Ensure you follow the termination procedure outlined in the contract.
• Hire a New Contractor: After termination, you can hire a new contractor to complete the project. Be sure to document all additional costs incurred due to the delay for potential reimbursement.

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8. Seek Legal Recourse

Protect Your Rights Through Legal Action

• Consult an Attorney: If the situation remains unresolved, consult an attorney specializing in construction law. They can provide advice tailored to your specific circumstances.
• File a Lawsuit: As a last resort, you may need to file a lawsuit for breach of contract to recover any damages or additional costs incurred due to the delay.

Conclusion

Delays in construction projects can be challenging, but with the right steps, you can manage the situation effectively. Ensure your contract is comprehensive and includes clear timelines, milestone payments, and penalties for delays. Communicate openly with your contractor, document everything, and consider formal notices or alternative dispute resolution methods if necessary. At LawPassport, we are dedicated to providing the legal support you need to navigate these challenges. Contact us today to learn how our services can help you address contractor delays and protect your investment.

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