In a perfect world, every construction project in Denver would be completed on time and within budget
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In a perfect world, every construction project in Denver would be completed on time and within budget. But the reality is that delays are a common—and often costly—part of the construction process. When a delay occurs, both contractors and property owners may suffer financial loss, strained relationships, and even legal exposure. Understanding your rights and options under Colorado construction law is essential. If you’re navigating a project that’s fallen behind schedule, speaking with the best Denver construction lawyer can help you protect your interests.
Before diving into legal remedies, it's important to understand what typically causes construction delays. Common causes include:
Weather conditions: Denver’s unpredictable weather, especially in winter months, often halts outdoor work.
Material shortages or delivery delays: Supply chain disruptions have become more common post-pandemic.
Labor issues: Shortages in skilled labor or subcontractor no-shows can derail timelines.
Design changes or scope creep: When the owner or architect changes the plans mid-project, timelines may need to be adjusted.
Permit or inspection delays: Denver’s permitting process can be slow, especially during high-demand seasons.
Financial disputes or non-payment: If funds dry up, work stops—plain and simple.
Not all delays create grounds for a legal claim. Colorado courts typically divide delays into three categories:
1. Excusable Delays
These are delays that occur due to circumstances outside of either party’s control—such as extreme weather or government shutdowns. If properly addressed in the contract, excusable delays may allow for extensions without liability.
2. Compensable Delays
If a delay is caused by one party’s breach or negligence—such as the owner failing to provide access to the site—then the other party may be entitled to compensation.
3. Non-Excusable Delays
These are delays that are the fault of the contractor or another party, such as failing to meet deadlines or mismanaging resources. In these cases, the contractor may be liable for damages.
When a project runs off schedule, both contractors and property owners in Denver have a few legal avenues to explore. The right strategy depends on the cause of the delay and the terms of your contract.
Breach of Contract Claims
Construction contracts should clearly state the project timeline and the consequences of failing to meet deadlines. If one party fails to uphold their responsibilities, the other may bring a breach of contract claim.
For property owners: You may be able to seek damages for added costs like renting alternative accommodations or lost business revenue.
For contractors: If delays stem from the owner's failure to provide plans, make timely payments, or approve work, you may be entitled to extra time or money.
Working with the best Denver construction lawyer is crucial to analyzing the contract and calculating potential damages.
Liquidated Damages Provisions
Many construction contracts include a “liquidated damages” clause—a predetermined amount the contractor must pay for each day the project runs late. These clauses are enforceable in Colorado if they reflect a reasonable estimate of actual damages and are not considered a penalty.
However, owners cannot claim liquidated damages if they contributed to the delay. This is known as the “prevention doctrine.”
Force Majeure Clauses
In the wake of COVID-19 and growing concerns over weather and labor unpredictability, force majeure clauses have become more important. These provisions excuse one or both parties from performance due to events beyond their control, such as natural disasters or government actions.
Force majeure clauses must be clearly drafted to be enforceable. If your contract includes one, it could determine whether you’re liable—or protected—during a major delay event.
Construction Delay Claims Under CDARA
Colorado’s Construction Defect Action Reform Act (CDARA) may apply if the delay is tied to defective construction or poor workmanship. Under CDARA, a party must send a Notice of Claim (NOC) and give the other side an opportunity to inspect and offer to repair.
If delay stems from a covered defect and the parties can’t reach an agreement, the case may proceed to litigation.
Whether you’re a contractor or a property owner, here’s what you should do when a delay becomes apparent:
1. Document Everything
Maintain clear records of communications, work logs, delay notices, change orders, weather reports, and anything else relevant. These records will be critical if a legal dispute arises.
2. Review the Contract
Check what your agreement says about delays, extensions of time, and dispute resolution. Clauses involving mediation, arbitration, or litigation should be reviewed by an experienced attorney.
3. Send a Notice of Delay
Most construction contracts require prompt written notice of a delay. Failing to send this notice could forfeit your right to relief.
4. Engage Legal Counsel Early
If tensions escalate or damages start to pile up, consult with the best Denver construction lawyer as soon as possible. A lawyer can evaluate whether to pursue mediation, file a mechanic’s lien, or take legal action for breach.
An experienced construction attorney will:
Interpret contract provisions and identify any breach
Assess whether delays are excusable, compensable, or non-excusable
Calculate delay-related damages
Guide you through negotiation, mediation, or litigation
Protect your rights in filing or defending against mechanic’s liens
Represent you in enforcing or contesting liquidated damages clauses
Whether you’re building a new development in RiNo or remodeling a property in Capitol Hill, delays can have serious consequences. Working with the best Denver construction lawyer ensures that your rights are protected and your project stays as close to schedule as possible.
Construction delays are frustrating—but they don’t have to lead to disaster. By taking proactive steps, documenting your position, and working with legal counsel, you can minimize the fallout and resolve disputes efficiently. At Baker Law Group, our attorneys help Denver property owners and contractors find smart legal solutions to construction delays and disputes. Reach out today for a consultation
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