construction delays

How to deal with construction delays & factor in such delays while home buying?

A friend has been waiting for possession of their apartment in Pune for the last three years. Not just them, there are lakhs of buyers across the country who have been rendered helpless delays in the construction of their purchased homes. Home buying is not easy, construction delays are a part and parcel of the real estate industry. Construction delays have been regarded as a global phenomenon and are not just confined to India.


Surprisingly it is not the developer who falters in every case, there could be various factors that can lead to construction delays – like delays in government approvals, delays in material supply, or even political instability. There is not much you can do about that, it is wise to actively look for early warning signs and follow basic steps to help you sail smoothly through the situation.


Let’s take a look at the common construction delays and how to reduce them on your project.


Reasons for delay in construction projects

There could be a delay in obtaining approvals from Govt. authorities, delays in supplying material, insufficient funds with the developer, labor disputes, health crisis like the Covid19 pandemic; and so on. Sometimes, weather conditions can be highly unpredictable and difficult to plan for. Rain, winds, or freezing temperatures can make work difficult.


Delays can be caused by a contractor misquoting a job estimate, or the developer running out of funds. When the money stops, so does everything else. Accurate budgeting will guarantee that the cash keeps flowing for materials, wages, and anything else on the project.


How to Deal with Construction Delays


  • Developer’s Reputation & Background

You must carry out a background verification of the developer and analyze the track record of his past projects, especially the delivery details. It is essential to book homes with trusted developers with a reputation for timely delivery to avoid any issues later.


  • Constant follow-ups

Always seek details of the construction schedule from the builder along with regular construction progress reports. Good developers will keep you posted about the status of the project from time to time.


  • Calculate any extra amount

If a delay is imminent, evaluate the amount you need to spend additionally every month, in case of a project delay, especially if you are financially stretched.


  • Clause in the Contract

Even with a well-laid-out schedule, construction delays may occur. A sound construction contract will set up a process for warning about impending delays, managing delays as they arise, and fairly allocating the cost of the delay. So, you must look for one when booking a home.


  • Encourage Collaboration and Transparency

Collaboration and transparency are the keys to avoiding payment disputes, and they’re also the keys to managing construction delays. This helps the homebuyer in understanding why the delay occurred and as soon as a delay occurs.


Generally, in most construction contracts, the contractors are provided with additional time, for delays which are for reasons attributable to the owner, and additional compensation on account of delay is also provided, in limited cases.


However, most construction contracts generally contain a specific clause regarding timely completion of the works under the contract, wherein it is also stated that the contractor is under an obligation to ensure timely completion of the contract. To protect the interests of homebuyers, there is a provision for compensation to the homebuyer for the delay in a project.


  • Unforeseen Situation

The covid-19 pandemic has taught us that there could be indefinite periods of delay in construction activity in case of lockdowns. Globally the entire economic activity had come to a halt. Such situations can never be predicted. To brace for any such unforeseen calamity, you must have some reserve funds which you may use in case of construction delays.


Whatever be the configuration of your dream home: a villa or a 2, 3 & 4 BHK apartment in Pune, you would not like any delay in getting their possession. The above-said pointers would help you deal with construction delays if any.

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