Question

If the owner of the project experienced delayed financial funding from the bank, is he/she allowed to delay the payment of the moneys due to the contractor? Explain.

In regards to construction contracts.

Answer 1

Ans : Yes , if the owner of the project experienced delayed financial funding from the bank . The owner of the project has full rights to delay the payment due to the contractor . But contractor`s in the end doing such thing would affect the completion time of the construction . If contractor delays the construction work you can sue the contractor for the delay and file a case against him and hire and new contractor with new deadlines . There are various reason for delays in the construction work which are divided in two types :

• Excusable delays
• Inexcusable delays

These delays further adds on to the cost which either the project owner or the contractor has to pay .

FACTORS AFFECTING PROJECT DELAYS :

• Poor cash flow
• Insufficient financial resources
• Financial market stability
• Late payments

Out of all these factors poor cash flow is the most significant way that leads to project delays followed by rest of the mentioned above factors.

WAYS TO AVOID PROJECT DELAYS :

• First and the foremost is the project planning , details need to checked before starting the project.
• Keep all the information at a particular space so as to make it easy to access.
• Keep an eye on project progress and measure the day to day progress
• Give all the possible information to the stakeholder so as to sort out the problem easily .

CONCLUSION :

If the project owner delays the payment of the project contractor both has to suffer the loss , in case of project owner he is going the loss the amount of money that he is going to generate from the project due to delayed construction . And in case of contractor the overhead costs increases . So construction should be done with proper ideology and future planning.

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