[Direct answer]In the Beijing area, the calculation of claims for construction period delays needs to distinguish between extension of the construction period and compensation for expenses and losses. According to Article 577 of the Civil Code of the People's Republic of China, if either the contractor or the employer fails to perform their contractual obligations or performs them in a manner inconsistent with the contract, they shall bear contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. The losses caused by construction period delays are generally limited to actual losses, including labor and machinery idle costs, material price differences, and reasonable management fees, and may refer to the contractual provisions on penalties for breach of contract or penalties for late completion. The calculation should be based on the extension of the construction period signed by the supervisor, the construction log, and the comparison with the contractual construction period, deducting the exemption periods such as force majeure. It is recommended to first fix the visas and correspondence letters, and then calculate the amount of the claim. For more details, please refer to the following link:Legal services for real estate transactions and construction projects.
1. Problem background and typical scenarios
Delays in construction period are a common dispute in construction projects. Typical scenarios include: the employer failing to provide construction drawings, site conditions, or progress payments on time, leading to a work stoppage; frequent design changes causing rework; abnormally severe weather and force majeure; and the contractor's poor management of the construction period leading to self-delays. Many contractors only verbally urge the employer to take action after delays occur, failing to apply for a construction period extension certificate in a timely manner, and lacking written evidence when claiming compensation later. In the judicial practice of Beijing courts, disputes over construction periods rely heavily on the verification of certificates and construction diaries, and verbal claims are rarely directly accepted. Such disputes often involve progress payment and completion settlement, and the pace of handling and the organization of evidence directly affect the success or failure of the claim. It is recommended to handle such disputes in combination with the following aspects:Legal services for real estate transactions and construction projectsCoordinate and respond to the situation in a comprehensive manner.
II. Key points of contention
The disputes over the claim for project delay focus on three points. Firstly, the attribution of responsibility for the delay: whether it is the employer's fault, the contractor's fault, or a combination of both, which requires comparing the contract terms with the on-site evidence. Secondly, the determination of the extension of the construction period: whether the contractor submitted the application for extension within the agreed or reasonable time limit and obtained the supervisor's approval. Claims made after the deadline may be regarded as a waiver. Thirdly, the scope of compensation for losses: whether the costs of idle working time, machinery rental fees, and material price increases actually occurred and were supported by invoices. The court usually limits the compensation to the actual losses and does not support punitive claims. For disputes over the payment of project funds, reference can be made to the relevant provisions.Creditor-debtor relations and enforcement case servicesAt the same time, we will claim the arrears from the employer.
III. Professional analysis by Henglue Lawyers
Based on practical experience in handling construction project disputes, the most common reason for failure in claiming for project delays is the "broken chain of evidence". Many projects only mention delays in meeting minutes, but fail to obtain project extension certificates signed by authorized personnel, making it impossible to prove that the delays were not caused by their own factors in litigation. Henglue Lawyers usually recommend the following measures: Send a letter immediately upon the occurrence of delays, attaching a calculation of the impact on the project schedule, and requesting the employer and supervisor to sign and acknowledge it; Completely preserve construction logs, weather records, material arrival lists, and correspondence; Concurrently claim for cost losses caused by delays attributable to the employer. For contracts with excessively high penalty clauses, clients may request adjustments in accordance with judicial interpretations. For cases involving multiple parties and subcontracting relationships, legal counsel can provide follow-up assistance.Business and contract dispute services for enterprisesClarify the boundaries of responsibilities.
IV. Practical suggestions and legal basis
The legal basis for this practice is Article 509 (Full Performance), Article 577 (Liability for Breach of Contract), Articles 583 and 584 (Scope of Damage Compensation), and Article 585 (Agreed Penalty for Breach of Contract and Judicial Adjustment) of the Civil Code of the People's Republic of China (effective January 1, 2021); as well as the Interpretation of the Supreme People's Court on Legal Issues Applicable to the Trials of Disputes over Construction Contracts (No. 25 of 2020, effective January 1, 2021) regarding the extension of the construction period, the quality of the project, and the settlement of project payments. Practical advice: - When signing the contract, specify in detail the circumstances of the extension of the construction period and the signing procedures; - Immediately claim and obtain evidence in writing for any delays; - Base the amount of the claim on the actual losses and the contractually agreed penalty for breach of contract to avoid exaggeration; - If no agreement is reached, apply for arbitration or litigation in accordance with the contractual dispute clauses. - For cases involving the determination of the validity of the contract, relevant provisions can be referred to.Special services and other case servicesEvaluation.
5. Henglu Law Firm's Reminder
When claiming for project delay, it is essential not to just "urge for compensation without documenting the facts". The first step is to send a letter to confirm the delay and request the contractor to acknowledge the extension of the construction period; the second step is to organize construction logs, visas, weather records, and correspondence to form a chain of evidence; the third step is to calculate the actual losses and make claims based on the contract's penalty clauses; the fourth step is to enter the dispute resolution process promptly if no agreement is reached to avoid exceeding the statute of limitations. At the same time, it is necessary to distinguish between the contractor's own delays and those caused by the employer. In the case of mixed faults, the compensation will be reduced accordingly. If you are unsure about the validity of the visas or the standard of the penalty clauses, it is recommended to consult a professional lawyer as soon as possible to prevent the claim from failing due to evidence defects. Related settlement disputes can also be resolved throughLegal services for real estate transactions and construction projectsHandle them all together.
VI. Frequently Asked Questions
Q1: Is it guaranteed that a claim for project delay will be successful, and what percentage of support will the court provide?
Whether a claim for project delay can be supported depends on the responsibility for the delay and the adequacy of the evidence, rather than a mere promise of the outcome. If the delay is indeed attributable to the employer's failure to provide construction conditions, arrears in progress payments, or design changes, and the contractor has submitted a request for an extension of the construction period in accordance with the contract and preserved the visa, the court will usually support the extension and compensation for the corresponding losses. However, if it is due to the contractor's own poor management, it will be difficult to obtain compensation, and the contractor may even be liable for breach of contract for late completion. The amount of compensation is limited to actual losses, including reasonable expenses such as idle working time and machinery rental fees, and is subject to the contractually agreed penalty. Excessive amounts may be requested to be adjusted. It is recommended to first clarify the attribution of responsibility before deciding whether to claim compensation.
Q2: What evidence is needed to claim for a delay in the construction period?
The core evidence includes: the construction contract and supplementary agreement (which specify the construction period, extension of the construction period, and penalty clauses), the bid-winning notice and the commencement order, the extension of the construction period visa signed by the supervision engineer, the construction diary and supervision monthly report, the certificate of abnormal weather issued by the meteorological department, the notice letter of the employer's delay in payment or delay in handing over the drawings, the records of the arrival of materials and equipment and the suspension of work, and the invoices for the loss of expenses (labor, machinery leasing, management fees), etc. The evidence should be organized around the three points of "the delay is not caused by the contractor - the contractor has claimed the extension in time - the actual loss has occurred". If there are missing materials, the contractor can apply to the court to retrieve the supervision files, and should not give up the claim just because the evidence is weak.
Q3: How much does it cost to hire a lawyer to handle a claim for project delay?
The litigation fees shall be calculated in accordance with the "Measures for the Payment of Litigation Costs", based on the amount of the litigation request and accumulated in stages. The losing party shall bear the fees or share them proportionally; if only the extension of the construction period is claimed and the subject matter is relatively small, the fees will be lower. The attorney's fees shall be charged based on the complexity of the case, the amount of the subject matter, and the workload, either on a piecework basis, by the hour, or as a percentage of the subject matter amount, subject to the terms of the engagement contract, without a unified government pricing. The appraisal fees arising from the appraisal of the project cost shall be prepaid by the applicant and finally shared according to the responsibility. It is recommended to clarify the charging methods and upper limits with the law firm before entrusting the case, and to weigh the amount of the claim against the cost of protecting rights. For small disputes, it is preferable to consider negotiation or correction through stamps first.
Q4: How long does it usually take to litigate a claim for project delay?
The length of litigation depends on both procedural factors and the complexity of the case: first-instance ordinary procedures are concluded within six months, and simplified procedures within three months; construction project cases are often significantly prolonged due to the determination of the project cost and construction period. Although the appraisal period is not included in the statutory time limit, it actually prolongs the overall duration of the litigation. If the parties appeal, the second-instance trial usually takes three months. After the judgment takes effect, the enforcement process begins, and the recovery time depends on the financial status of the employer. Overall, cases involving construction period claims with appraisal often take more than a year from filing to actual recovery. It is recommended to apply for property preservation concurrently during litigation, seize the employer's accounts or unsold assets, and increase the possibility of mediation and recovery.
Q5: If there's a delay in the construction schedule, what should I do first to address it?
It is recommended to proceed in four steps: Firstly, immediately send a written letter to the employer and the supervisor upon the occurrence of the delay, explaining the reasons for the delay, the number of days affected, and attaching the calculation basis, and requesting confirmation of the extension of the construction period; Secondly, improve the evidence by recording the construction log every day, preserving the weather and on-site images, and organizing the correspondence and visas; Thirdly, calculate the losses such as the delay in work and management fees based on the actual situation, and form a claim report in accordance with the contract's breach of contract penalty clause; Fourthly, if no agreement can be reached, apply for arbitration or litigation within the statute of limitations according to the contract's dispute resolution clause, and apply for property preservation if necessary. Throughout the process, keep the delivery receipts, and if necessary, entrust a lawyer to participate in the negotiation and drafting of documents.
The above questions and answers are mainly based on the judicial practice in Beijing. There may be differences in the adjudicative opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.