Well, Q1 of 2025 ended with a bang and continued the expansion of transactional work for the Gray Reed Construction Team. The announcement of tariffs and feared disruptions in the supply chain certainly created a point of emphasis when reviewing and negotiating contracts. Any time the marketplace sees sharp material increases in material pricing, disruptions can be expected, including at the project schedule level. This why contracting parties should always give careful attention to extension of time provisions in each agreement they review.
Extensions of Time
Extensions of time should not be overlooked, especially when an agreement includes the application of liquidated damages and other forms of damages for delay. As the owner of an industrial construction project, you’ll want to ensure there are tight restrictions on how extensions of time are processed and permitted.
Prime contracts should only permit extensions of time subject to timely written notice provisions and a formal change order process. Force majeure and defined events of excusable delay should serve as the primary, if not sole, basis for extending the original contractor’s performance schedule.
All time extension requests must be submitted in writing and processed formally through the change order provision of the contract. This requirement applies universally—including weather delays and force majeure events. Contractors must document all delays (anticipated or unanticipated) and provide prompt notification to the owner. In industrial construction, where every day of delay carries significant financial implications for all parties, best practice requires contractors to submit detailed written notices explaining the delay’s basis, time impact, and requested schedule adjustment. This disciplined approach creates clarity and minimizes disputes when the project concludes.
Stay Tuned
This is a continuation of a series of blogs related to what industrial owners must consider when protecting their economic interests in the timely completion of critical construction projects.
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