Claims Digger
← Glossary

Delay Classification & Claims

Compensable Delay

A compensable delay entitles the contractor to both additional time and additional money -- typically reserved for delays caused by the owner or the owner's own agents.

Definition

Every compensable delay is excusable (the contractor isn't at fault), but not every excusable delay is compensable -- a differing site condition might be excusable under the contract without triggering additional payment, while an owner's late delivery of owner-furnished equipment typically is both excusable and compensable, since the owner directly caused it. Which specific causes are compensable versus merely excusable is governed entirely by the contract's own terms, which vary significantly between contract forms.

Example

An owner takes 30 days longer than contractually allowed to review and approve a required submittal, directly delaying downstream work -- a delay that's both excusable (not the contractor's fault) and compensable (caused by the owner specifically), entitling the contractor to both a time extension and delay costs.

Related terms