Careful planning helps avoid unpleasant surprises down the road. You can have your plans and specs drawn to a tee with a make sense timeline and you even allow for change orders that invariably take place during construction. But what happens if even the best of plans fall short? What happenswhen construction takes too long when your construction is taking longer than you and your builder anticipated?

Delays can be cause for a variety of reasons. A contractor may have some labor issues and can’t find quality workers. This is a common issue in areas where new housing demand is on the rise. Many times a builder has to rely on the word of a worker who says he knows how to finish concrete but once on the job the builder sees that he has no clue. Worker shortage can slow you down. The weather can also be a factor. While a builder can plan on weather-related delays before it is impossible to determine what Mother Nature has in store. Or maybe you had a design change and the builder had to make adjustments on the fly.

When construction delays occur that also means the funds that have been issued to the builder by your bank are accruing interest. If your project so far has $200,000 doled out and the project is well past 30 days overdue, you’re being charged interest. Daily interest on the amounts extended the builder. In your contract with the builder it needs to be spelled out when and how the builder can be held accountable for late charges or accrued interest levied by the bank. If the delays are caused by situations out of the builder’s control such as weather or worker shortage, it’s likely you’ll be responsible for additional bank charges. If however the builder is at fault due to construction errors there needs to be an agreement that holds the builder responsible.