Construction Delay - Expected Case Cost Analysis

Liquidated Damages (LDs)

Most commercial construction contracts include per-day penalties for failing to meet the substantial completion deadline.

• Commercial project LDs (per day): $1,000-$5,000
• Public works LDs (per day): $2,500-$10,000
• Typical delay duration (re-survey + redesign): 14-30 days
• Expected LD exposure: $28,000-$150,000

Extended General Conditions

Keeping a job site active during a delay requires ongoing overhead: rigorous costs unrelated to direct labor.

• Site supervision (Superintendent/PM): $8,000-$15,000/month
• Equipment rental (idle costs): $5,000-$20,000/month
• Temporary utilities/security: $2,000-$5,000/month
• Total monthly overhead: $15,000-$40,000

Remobilization and Subcontractor Claims

Subcontractors forced to demobilize and return later will charge for disruption and scheduling impacts.

• Demobilization/Remobilization fees: $5,000-$15,000
• Subcontractor delay claims (idle labor): $10,000-$50,000
• Material cost escalation (during delay): variable

Total Expected Cost impact

Expected midpoint: $85,000

(Range: $48,000 - $250,000+)

Note: Costs are for the delay period only and do not include the direct cost of correcting the error (e.g., moving a foundation).

Which liability decision leads to this cost?

Understanding these costs is useful only if you know you are liable. Confirm your liability status before financial planning.

• Step 1: Confirm Liability (Decision Guide)
• Step 2: Compare Related Cases