What damages can I claim for construction delay in Canada?
Compensable delay generally allows recovery of extended site (field) overhead, unabsorbed head-office overhead, idle equipment and labor standby, and cost escalation for the period of delay โ provided the delay was caused by the owner and you gave proper notice under the contract.
What is concurrent delay?
Concurrent delay occurs when both the owner and the contractor cause delay during the same period. Canadian courts generally allow an extension of time for concurrent delay but often deny delay damages for periods where the contractor's own delay was concurrent, because the loss would have occurred anyway.
Do I need a schedule analysis to prove delay?
Usually yes. Courts and arbitrators expect a critical path method (CPM) schedule analysis showing that the delaying event actually pushed out the project completion date. A claim based only on total cost or an as-planned-vs-as-built comparison is weaker and often challenged.
Does my contract limit delay damages?
Frequently. Many contracts contain no-damages-for-delay clauses, notice requirements, or liquidated-damages provisions that shift or cap delay risk. Notice provisions are often strictly enforced, so read your contract before assuming delay costs are recoverable.