The decision to suspend or terminate a contract can significantly impact a construction project. Those impacts can also extend to the involved parties in the form of financial damages, resulting in a dispute between the parties. For over 35 years, Interface has assisted owners and contractors engaged in such disputes by providing the following expert services:
- Claims preparation or analysis
- Schedule delay analysis
- Damage valuation
- Expert testimony
- Litigation and arbitration support
While each suspension or termination claim is unique, Interface’s approach to analyzing suspension or termination claims typically involves a thorough review of contemporaneous project documents and interviews of key project personnel. Furthermore, as contractor performance often serves as justification for suspension or termination, Interface examines the actions of the contractor and owner against contractual requirements and industry norms for standard of care.
Often, the amount of claimed damages arising from suspension or termination is in dispute. Interface’s construction experts analyze relevant project data to ascertain the issues that resulted in the damages and to calculate those damages. While damages can arise in a number of forms, the following are the most common factors resulting in damages due to the suspension or termination of a contract:
Common Owner Claims
- Increased variable costs due to extended project durations
- Lost profits due to deferred production
- Inefficient utilization of labor and equipment
- Replacement contractor costs
- Costs to correct defective work
- Diminished value due to defective work
Common Contractor Claims
- Costs to bid the project
- Mobilization/demobilization costs
- Lost profits on anticipated work
- Lost labor productivity
- Idle equipment
- Outstanding invoices on completed work
- Loss of goodwill/future business opportunities
Historically, a significant portion of Interface’s work involves suspension and contract termination; these issues are often leaders in litigation and arbitration matters. Interface leverages its decades of hands-on experience across various sectors of the capital projects industry to assist clients through the complicated issues surrounding contract suspensions and terminations. To learn more about how Interface can provide assistance, please contact us.