How Does A Delay In Renovation Project Affect Contractors?


In home renovation projects, delay in the process and completion of the project is quite a common occurrence. Almost every home undergoing renovation faces this problem. This delay can be caused by either the contractor or the homeowner, and sometimes even by both.

It has been seen that the delay in home renovation projects can be the homeowner’s fault in a few ways:

  • Changes, both major and minor, in renovation plans after completion of work.

  • Miscommunication among homeowners.

  • Delay in payments to contractors, dealers, interior designers and labourers.

  • Miscommunication and also lack of communication amongst contractors and homeowners. For instance, suppose there is some leftover material, and you want it to be used during the renovation project. In that case, you will have to inform your contractor about it, so that it does not become your burden to bear if the material gets broken or damaged.

However, there are no cost cutting or additional payments involved if the renovation work gets delayed from the client’s side.

Meanwhile, contractors have to face quite a few problems when there is a delay in the renovation project.

In the sphere of Home Renovation, if there is a delay in renovation work on the part of the contractor, then he or she will face the difficulty. If the contractor agrees on, say, three months, he or she receives payment on a timely basis. In case there is a delay in work even after the completion of 3 months, the contractor will have to pay the penalty as per the agreement between him/ her and his/her client.

In some cases, the clients even refuse to give the contractor the full payment.

At the Corporate level, for example in hotels, hospitals, airports or any government building, the contractor is required to pay the penalty if there is a delay in renovation or construction by even a day. The penalty at these corporate levels is paid on the basis of mutual understanding between the two parties, i.e., the client and the contractor. Valid reasons on the part of the contractor, however, with proper and valid certification might result in the penalty to be forgiven. There is another advantage for the contractor in this sphere.

If he or she manages to get the renovation work done sooner than the agreed-upon deadline, the contractor receives an additional payment from the corporate client.
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