When owners cause delays, contractors may recover the cost of staying on site longer.
In this article
What they are
Time-related costs: supervision, trailers, equipment and temporary utilities.
Delays
Owner-caused delays may be compensable.
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Notice
Follow contract deadlines.
Daily rates
Calculate time-related costs per day.
Schedule analysis
Show the critical path impact.
Documentation
Daily reports and correspondence.
Negotiation
Present facts clearly.
Prevention
Price general conditions accurately from the start.
Where to start
Build a daily general conditions rate at the beginning of every project.
Common mistakes
Late notice, weak schedule analysis and no daily rate.
An example
A GC calculated a daily general conditions rate at the start of the job. When the owner delayed design decisions, the contractor sent timely notice and recovered its extended costs.
What to track
Track delay days by cause, notices sent, daily general conditions rate and approved time extensions.
Questions to ask
What does the contract say about compensable delays? When is notice due? What is our daily cost of staying on site?
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Frequently asked questions
When can contractors claim extended general conditions?
When a compensable delay, often caused by the owner, extends the project and the contract allows recovery, with proper notice and documentation.