In the construction industry, delays are among the most frequent sources of disputes. Whether it’s due to late material delivery, design changes, or unexpected site conditions, these issues can cause costly project overruns.
Under Construction Law, a delay claim allows one party—usually a contractor—to seek extra time or compensation when the project timeline is disrupted.
These claims ensure that both employers and contractors are treated fairly when unexpected events impact the schedule.
When Can You Make a Delay Claim Under Construction Law?
You can file a delay claim when a project fails to meet its agreed completion date and the delay was caused by an identifiable event.
Common scenarios include:
- Employer-caused delays (e.g., design changes or late approvals)
- Contractor-caused delays (e.g., poor planning or labor shortages)
- Neutral events (e.g., extreme weather, pandemics, or natural disasters)
Construction Law distinguishes between excusable and non-excusable delays — a key factor in determining who bears responsibility and whether compensation applies.
What Do You Need to Prove to Win a Delay Claim?
To succeed in a delay claim under Construction Law, five essential elements must be proven:
- A Valid Contract Exists
You must show that a legally binding construction contract outlines rights, duties, and remedies for delay. - Identification of the Delay Event
Clearly define the event causing the delay, supported by documentation (emails, reports, logs). - Proof of Causation
Demonstrate a direct link between the event and the delayed project completion. - Impact on Timeline
Show how the delay changed the project schedule using progress charts or expert analysis. - Evidence of Financial Loss
Quantify additional costs—such as prolonged labor, equipment rental, or extended site supervision—to justify compensation.
These elements form the legal foundation of any successful delay claim under Construction Law.
What Evidence Do You Need for Delay Claims?
Solid evidence is the backbone of any claim. Under Construction Law, documentation helps prove both cause and impact.
Recommended evidence includes:
- Project schedules and updated Gantt charts
- Site diaries and daily progress reports
- Correspondence between parties
- Meeting minutes and variation orders
- Independent expert delay analysis
Proper record-keeping not only strengthens claims but also helps avoid disputes later.
What Remedies Are Available Under Construction Law?
Depending on who caused the delay and how it affected the project, Construction Law provides several remedies:
- Extension of Time (EOT):
Allows the contractor more time to complete work without penalties. - Liquidated Damages:
Pre-agreed financial penalties for delays caused by the contractor. - Compensation for Loss and Expense:
Covers costs such as idle equipment, additional labor, and overhead due to delay.
Selecting the right remedy depends on contract terms and the delay’s origin.
How Do Delay Claims Interact with Other Construction Disputes?
Delay claims often overlap with payment disputes, variations, or defect liability issues.
Construction Law provides mechanisms to resolve these conflicts through:
- Adjudication: Quick, interim resolution to maintain cash flow.
- Arbitration: A private, legally binding dispute process.
- Litigation: Court-based resolution, often used for complex cases.
Each mechanism has its benefits depending on urgency, cost, and complexity.
How Can You Prevent Delay Disputes in Construction Projects?
Avoiding delay disputes starts long before construction begins. Under construction law, both employers and contractors can reduce risks by:
- Drafting clear and detailed contracts
- Defining approval timelines and responsibilities
- Maintaining transparent communication channels
- Using digital project management tools for real-time updates
- Keeping detailed daily records of progress and challenges
Prevention not only saves time and money but also preserves business relationships.
What Happens If Both Parties Contribute to the Delay?
When both employer and contractor cause delays, Construction Law may treat it as a concurrent delay.
In such cases:
- The contractor may receive an extension of time but not necessarily compensation.
- The employer typically cannot claim liquidated damages during the overlapping delay period.
Concurrent delay cases require strong documentation and often expert analysis to allocate responsibility accurately.
Are Delay Claims Common in Malaysia?
Yes. Malaysia’s construction sector frequently faces delay-related disputes, especially in large infrastructure and property projects.
Understanding your contractual rights and Construction Law principles helps minimize financial exposure and protect reputations in this competitive market.
Conclusion
Delay claims are a central issue in the construction industry, and their success depends on proving specific elements under Construction Law. From identifying the cause of delay to demonstrating financial loss, parties must provide strong evidence to support their claims. By understanding the requirements of Construction Law, contractors and employers can better protect their rights, ensure fair outcomes, and maintain smoother project progress.
For businesses in Malaysia, being prepared for delay claims is essential to safeguarding both finances and reputations in the construction sector.
FAQs
A delay claim seeks compensation or an extension of time when a construction project is delayed.
You must show a valid contract, identify the cause of delay, prove causation, demonstrate impact, and provide evidence of losses.
Schedules, progress reports, site records, and correspondence are key evidence under Construction Law.
Common remedies include extensions of time, liquidated damages, and compensation for loss and expense.
Responsibility depends on whether the delay is caused by the employer, contractor, or neutral events, as recognized under Construction Law.
Disclaimer: This article is intended to provide general information only and does not constitute legal advice. It should not be used as a substitute for professional legal consultation. We recommend seeking legal advice before making any decisions based on the information in this article. TSL Malaysia fully disclaims any responsibility for any loss or damage that may result from its reliance on this article.
