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DELAY DAMAGES FOR CONSTRUCTION CONTRACTS

JM
Jon Miller
Wed, Feb 5, 2025 2:06 PM

Counselors:

Mt city is interested in knowing what other cities' experiences have been on enforcing delay damages for public construction contracts.  If your city has had construction deadlines with associated delay damages, has your city be able to recover any delay damages and, if so, has that been through negotiation before final payment or through court action?  I would appreciate hearing from you.

Jonathan E. Miller
City Attorney
City of Mustang
1501 N. Mustang Road
Mustang, Oklahoma 73064
Telephone: (405) 376-7746
Facsimile: (405) 376-7721

NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited.  If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.

Counselors: Mt city is interested in knowing what other cities' experiences have been on enforcing delay damages for public construction contracts. If your city has had construction deadlines with associated delay damages, has your city be able to recover any delay damages and, if so, has that been through negotiation before final payment or through court action? I would appreciate hearing from you. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.
CT
Chuck Thompson
Wed, Feb 5, 2025 6:39 PM

IMLA is working on hosting a program on construction law in Providence RI in late June. Hoping those with construction law issues to discuss or things to learn will consider coming.
Sent from my iPhone

On Feb 5, 2025, at 9:08 AM, Jon Miller via Oama oama@lists.imla.org wrote:


Counselors:

Mt city is interested in knowing what other cities’ experiences have been on enforcing delay damages for public construction contracts.  If your city has had construction deadlines with associated delay damages, has your city be able to recover any delay damages and, if so, has that been through negotiation before final payment or through court action?  I would appreciate hearing from you.

Jonathan E. Miller
City Attorney
City of Mustang
1501 N. Mustang Road
Mustang, Oklahoma 73064
Telephone: (405) 376-7746
Facsimile: (405) 376-7721

NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited.  If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.

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IMLA is working on hosting a program on construction law in Providence RI in late June. Hoping those with construction law issues to discuss or things to learn will consider coming. Sent from my iPhone On Feb 5, 2025, at 9:08 AM, Jon Miller via Oama <oama@lists.imla.org> wrote:  Counselors: Mt city is interested in knowing what other cities’ experiences have been on enforcing delay damages for public construction contracts. If your city has had construction deadlines with associated delay damages, has your city be able to recover any delay damages and, if so, has that been through negotiation before final payment or through court action? I would appreciate hearing from you. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments. -- Oama mailing list -- oama@lists.imla.org To unsubscribe send an email to oama-leave@lists.imla.org
KS
Kimberlee Spady
Wed, Feb 5, 2025 7:12 PM

Jon,

Hinton recently deducted around $30K from the final payment on a project due to delays. The engineers discouraged this to some extent, but the Board was pretty upset with the contractor, as they did not even begin working on the project until about halfway through the time for completion.

The engineer advised that what is typically done is the contractor will do some extra work, not even necessarily related to the project, that approximates the value of the penalty.  Hinton did not want/need any extra work.

The final payment and determination of any delay penalty was an agenda item and the contractor's representative came to the meeting to make his case.  There was respectful negotiation, but the deduction was a fair amount more than the contractor requested.

Unfortunately, I am afraid one of the public trusts is about to go through the same thing with the same contractor.  The retainage should be enough to cover any delay penalties, so that's where the funds will come from if needed.  I've been keeping an eye on this and would have advised the client to withhold payment if it looked like the retainage might be insufficient.

Hope this is helpful. Let me know if you have any questions and I'll do my best to answer.
Kim Spady

[cid:image001.png@01DB77CD.A837C5B0]
Kimberlee Spady
Lawyer

Telephone: 405.542.6056              Email: kim@spadylaw.commailto:kim@spadylaw.com

114 E. Main Street - PO Box 433 - Hinton - Oklahoma - 73047

From: Jon Miller via Oama oama@lists.imla.org
Sent: Wednesday, February 5, 2025 8:07 AM
To: oama (oama@lists.imla.org) oama@lists.imla.org
Subject: [Oama] DELAY DAMAGES FOR CONSTRUCTION CONTRACTS

Counselors:

Mt city is interested in knowing what other cities' experiences have been on enforcing delay damages for public construction contracts.  If your city has had construction deadlines with associated delay damages, has your city be able to recover any delay damages and, if so, has that been through negotiation before final payment or through court action?  I would appreciate hearing from you.

Jonathan E. Miller
City Attorney
City of Mustang
1501 N. Mustang Road
Mustang, Oklahoma 73064
Telephone: (405) 376-7746
Facsimile: (405) 376-7721

NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited.  If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.

Jon, Hinton recently deducted around $30K from the final payment on a project due to delays. The engineers discouraged this to some extent, but the Board was pretty upset with the contractor, as they did not even begin working on the project until about halfway through the time for completion. The engineer advised that what is typically done is the contractor will do some extra work, not even necessarily related to the project, that approximates the value of the penalty. Hinton did not want/need any extra work. The final payment and determination of any delay penalty was an agenda item and the contractor's representative came to the meeting to make his case. There was respectful negotiation, but the deduction was a fair amount more than the contractor requested. Unfortunately, I am afraid one of the public trusts is about to go through the same thing with the same contractor. The retainage should be enough to cover any delay penalties, so that's where the funds will come from if needed. I've been keeping an eye on this and would have advised the client to withhold payment if it looked like the retainage might be insufficient. Hope this is helpful. Let me know if you have any questions and I'll do my best to answer. Kim Spady [cid:image001.png@01DB77CD.A837C5B0] Kimberlee Spady Lawyer Telephone: 405.542.6056 Email: kim@spadylaw.com<mailto:kim@spadylaw.com> 114 E. Main Street - PO Box 433 - Hinton - Oklahoma - 73047 From: Jon Miller via Oama <oama@lists.imla.org> Sent: Wednesday, February 5, 2025 8:07 AM To: oama (oama@lists.imla.org) <oama@lists.imla.org> Subject: [Oama] DELAY DAMAGES FOR CONSTRUCTION CONTRACTS Counselors: Mt city is interested in knowing what other cities' experiences have been on enforcing delay damages for public construction contracts. If your city has had construction deadlines with associated delay damages, has your city be able to recover any delay damages and, if so, has that been through negotiation before final payment or through court action? I would appreciate hearing from you. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.