Construction delays can affect a project’s cost and schedule, so the reasons a job runs late often matter. The result depends on the contract and the facts. Recovery turns on what the agreement says, what the delay cost you, and whether the contractor caused it. This guide covers the main points for owners and property investors in Tampa, Hillsborough County and the Tampa Bay area.
Eduardo A. Maura is the lawyer responsible for this page. Our office is at 1646 W Snow Ave in Tampa, and we represent businesses in Tampa, Hillsborough County and the Tampa Bay area.
Can an Owner Recover Construction Delay Damages in Florida?
Recovery is not automatic. A late project can cost an owner rent, loan interest and extra oversight long after the crew leaves. Start with three documents: the contract’s completion date, any late-completion or liquidated damages clause, and your records of what the delay cost you.
If your building was finished months late and cost you rent or loan interest, you may have a claim worth reviewing, and our team can walk through your contract's delay terms with you. Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
What Losses Do Owners Commonly Claim?
Owners commonly claim lost rent, extra financing costs and added owner-side expenses.
Lost rent applies when a building could not be leased, occupied or opened on schedule. Carrying costs cover interest and fees on construction loans or other money that stayed tied up longer than planned. Where no special contract sets an interest rate, Florida’s interest statute points to the judgment rate in § 55.03.
Added costs can include extended site supervision, insurance and temporary space. Our construction litigation work covers the wider dispute options for these claims.
Liquidated Damages Versus Actual Damages
A liquidated damages clause sets a fixed amount the contractor pays for each day or week of late completion.
A fixed amount can simplify the claim because the contract already names the number. Whether a court enforces it turns on the clause’s wording and the facts. Without a clause, the owner builds the claim from lost rent, carrying costs and other proven losses. Each figure needs a paper trail, such as lease terms, loan statements and invoices. Without that trail, the number is hard to defend.
Do No-Damages-for-Delay Clauses Block the Claim?
Not always. A no-damages-for-delay clause can limit what a contractor owes for delay, sometimes to extra time rather than money. Read its exact wording first.
The Florida Supreme Court, in Basulto v. Hialeah Automotive, concluded that “both the procedural and substantive aspects of unconscionability must be present, although not necessarily to the same degree, and both should be evaluated interdependently rather than as independent elements.” The court must find both an unfair process in how the deal was made and unfair terms, weighed together, as explained in Basulto v. Hialeah Automotive.
Owners also argue the clause does not reach delays caused by the owner’s own interference, or delays the parties never expected. Notice and change order terms matter too, because they can decide whether a delay claim is preserved. If a written contract covers the same subject, a separate unjust enrichment claim generally will not stand, as Williams v. Johnson explains.
What Must an Owner Prove?
Records tied to the project schedule and costs can help explain what happened when a job runs late.
Causation often requires a schedule analysis. A critical path comparison shows which activities drove the finish date, using baseline and updated schedules. When both sides contributed to the delay, the analysis of responsibility gets more detailed.
Keep the file organized from the start. Gather baseline and updated schedules, daily logs, written delay notices, change orders, lease or occupancy records and loan statements. Waiting to organize that file can cost time you need for notice and documentation.
How Long Do You Have to Bring a Late-Project Claim?
For actions founded on the design, planning, or construction of an improvement to real property, Florida’s limitations statute runs the time from the earliest certificate or abandonment date, except that when the action involves a latent defect, the time runs from when the defect is discovered or should have been discovered with the exercise of due diligence. In any event, the action must start within seven years after that date.
Under § 95.03, a term that sets a shorter period is void. Under § 95.03, a contract provision fixing the period of time within which an action arising out of the contract may be begun at a time less than that provided by the applicable statute of limitations is void, so check any contract notice steps first.
If the contract requires arbitration, Florida law generally enforces that agreement under § 682.02. The American Arbitration Association publishes construction procedures for contracts that choose its rules.
Under Florida law, each side generally pays its own attorney’s fees unless a contract or statute provides otherwise, as stated in Price v. Tyler.
Not sure what your next step is?
Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
Talk Through Your Late-Project Situation With Our Team
Owners with a late project usually need to review the contract’s delay and notice terms before choosing a next step.
Can a contract shorten the time to sue?
No. Florida law voids a contract term that sets a shorter period than the statute allows.
Who pays attorney’s fees?
Usually each side pays its own, unless a contract or statute says otherwise.
Do notice terms matter?
Yes. Check the contract’s written notice steps, because they can affect whether a delay claim is preserved.
If your building was finished months late and you are deciding whether to send a delay notice or file suit, you may have a claim worth reviewing. Reach our team through the contact page or call (305) 570-2208.
