Is your home renovation project running late?

Is your project suffering from some of the following: Ceiling lights not installed; moldings unfinished; closet doors hanging off their hinges. There are several scenarios in which you could be entitled to compensation from your contractor, design professional or consultant.

Each party to home renovation or construction contract has certain duties and obligations. These duties and obligations are specific to the project delivery model chosen. The homeowner’s duties typically include financing the project and making payments (interim and final), maintaining access to the site, approving design drawings and materials, and not interfering with the means and methods of the contractor. Contractor duties usually include the following: Completing the work in a “good and workman-like manner” fit for purposes intended in accordance with the set schedule; identifying and obtaining required resources, including the workforce for the project; and determining the means and methods to complete the construction.

Varying remedies

If these responsibilities are not executed properly by a party, the completion of a project is likely to be delayed. There are three categories of delays – excusable, compensable and non-compensable – depending on the party who is responsible for the delay, and each have varying remedies.

Excusable delays are caused by unexpected and inexorable external forces, such as an international pandemic, a blockade or force of nature, such as a tornado. In these cases, because no party is responsible for the cause of the delay, there is typically no extra compensation unless specifically provided for in contract. The remedy is typically an extension of the construction schedule.

Compensable delays result in the contractor being compensated and are those caused by someone other than the contractor or other than someone under the contractor’s control (such as subcontractors). These can include owners or designers providing late drawings and the owner providing impeded site access. Remedies for compensable delays are dependent on whether a buffer has been written into the contract, but typically include extra compensation to the contractor as well as a schedule extension.

Non-compensable damages

Non-compensable damages result in the customer being compensated and may include such things as the contractor supplying an insufficient workforce or the work being done inefficiently. Depending on the scope of the project defined in the contract including the drawings and specifications incorporated by reference and whether a project has reached substantial completion, the contractor may be liable to you for damages and might have to accelerate completion of the project.

It is essential that you retain a lawyer who understands construction contracts, project delivery models, and the Construction Act to ensure you are protected and compensated in the best way possible throughout your renovation journey.