FCC

Dealing with Delays

2025-02-22

Delays have beleaguered many a construction project in India, hampering the country from building to its ability and potential, and leading to additional costs incurred by the contractor.

The reasons for delay

In India, delays mainly occur owing to obtaining statutory approvals, non-provisioning of right of way, utility diversion and approval of drawings and design. Delays are broadly classified based on responsibility and effect. Excusable delays arise from factors beyond the contractor’s control, such as force majeure events or employer-induced delays. These delays generally entitle the contractor to an extension of time (EoT); and in some cases, EOT costs, if there were no concurrent delays on account of the contractor. Conversely, non-excusable delays such as lack of resource mobilisation by the contractor lead to imposition of liquidated damages...