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Project delays clause: Copy, customize, and use instantly

Introduction

A project delays clause outlines the responsibilities and procedures for handling delays in the execution of a project. This clause ensures that both parties understand the potential causes of delays, the steps to mitigate them, and the consequences of failing to meet project deadlines. It aims to provide clarity on how delays will be managed and how they may impact timelines, costs, and other project outcomes.

Below are templates for project delays clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

Standard project delays clause

This version provides general terms for delays.

The [Company] agrees to complete the [specific project] within the agreed timeline. If a delay occurs due to unforeseen circumstances, the [Company] shall notify the [Investor] promptly, providing an updated timeline and reasons for the delay. Both parties will work together to minimize the impact of the delay on the project schedule.

Project delays clause with force majeure

This version includes force majeure provisions.

Neither party shall be held liable for delays resulting from force majeure events, such as natural disasters, war, or government action, which are beyond their control. In the event of a force majeure delay, the affected party shall notify the other party within [X] days and propose a new timeline for project completion.

Project delays clause with liquidated damages

This version includes liquidated damages for delays.

If the [Company] fails to meet the project milestones or completion dates as outlined in the Agreement, the [Company] shall pay liquidated damages of [$X] per day for each day the project is delayed beyond the agreed completion date.

Project delays clause with revised schedule

This version includes a revised schedule for delays.

In the event of a delay, the [Company] will submit a revised project schedule to the [Investor], outlining new completion dates for each milestone. The revised schedule shall be mutually agreed upon by both parties, and any further delays must be communicated and documented in writing.

Project delays clause with mitigation plan

This version includes a requirement for a mitigation plan.

If the [Company] anticipates a delay in the project, it shall submit a mitigation plan to the [Investor], detailing the cause of the delay, steps to address it, and measures to prevent future delays. The [Investor] may request modifications to the plan if deemed necessary.

Project delays clause with automatic extension

This version allows for automatic extension of timelines.

If a delay occurs due to circumstances beyond the [Company]’s control, the project deadline will be automatically extended by a period equivalent to the length of the delay, without any penalty or additional cost to the [Company].

Project delays clause with early warning system

This version includes an early warning system for delays.

The [Company] shall implement an early warning system to identify potential delays before they occur. If any delay is anticipated, the [Company] must notify the [Investor] immediately and take proactive steps to minimize or avoid the delay.

Project delays clause with a cap on delay penalties

This version limits delay penalties.

In the event of a delay, the [Company] agrees to pay liquidated damages as described in the Agreement, but the total amount of penalties shall not exceed [X]% of the total project value. This cap is intended to balance both parties’ interests while encouraging timely project completion.

Project delays clause with suspension of work

This version allows suspension of work due to delays.

If delays are caused by the [Investor] or any third-party contractors, the [Company] may suspend work on the project until the delay is resolved. During this suspension period, the [Company] shall not be liable for any costs or penalties resulting from the delay.

Project delays clause with notification and extension process

This version includes a formal notification and extension process.

The [Company] must notify the [Investor] in writing within [X] days of any anticipated delay. The notification shall include a detailed explanation of the delay, the steps being taken to address it, and a request for an extension of the project timeline. The [Investor] shall respond to the request within [X] days.

Project delays clause with project suspension rights for the [Investor]

This version grants suspension rights to the [Investor].

If the [Company] fails to meet key milestones or project deadlines, the [Investor] may suspend the project and withhold payments until the project timeline and milestones are back on track. This suspension will remain in effect until the delay is rectified.

Project delays clause with adjustment of payment schedule

This version allows for adjustment of the payment schedule due to delays.

In the event of a delay in project delivery, the [Investor] may adjust the payment schedule to align with the revised project timeline. Payments will be made based on the completion of new milestones or phases as agreed in the revised schedule.

Project delays clause with exclusion of delays due to [Company] negligence

This version excludes delays caused by [Company] negligence.

Delays caused by the negligence or failure of the [Company] to perform its obligations as outlined in the Agreement shall not be considered force majeure, and the [Company] shall remain liable for any penalties or damages resulting from such delays.

Project delays clause with delay in critical path activities

This version includes delays in critical path activities.

If a delay occurs in any critical path activity, which directly impacts the overall project timeline, the [Company] shall notify the [Investor] immediately. The delay will be addressed on an urgent basis, and the [Company] will take all necessary steps to minimize its impact on the final project completion date.

Project delays clause with cumulative delays

This version covers cumulative delays.

If delays occur at multiple stages of the project, the cumulative effect of these delays will be evaluated. The project timeline shall be extended by the total amount of delay, and penalties will be applied based on the cumulative delay duration.

Project delays clause with negotiated extension for project delays

This version allows for negotiated extensions.

If the [Company] is unable to meet the project deadlines due to unforeseen circumstances, the [Company] and the [Investor] agree to negotiate a reasonable extension of the project deadline, considering the nature and impact of the delay.

Project delays clause with defined delay thresholds

This version includes defined delay thresholds.

The [Company] agrees to meet the deadlines for all milestones outlined in the project plan. If any milestone is delayed by more than [X] days, the [Investor] may request a revision of the project plan and timeline, and additional penalties may apply.

Project delays clause with third-party responsibility for delays

This version assigns responsibility to third parties for delays.

If delays are caused by a third-party contractor or supplier, the [Company] will immediately inform the [Investor] and take steps to resolve the delay. The [Company] remains responsible for managing these delays and ensuring that they do not affect the overall project timeline.

This version specifies delay-related costs.

Any delays caused by the [Company] that result in additional costs for the [Investor] will be reimbursed by the [Company]. These costs may include but are not limited to increased labor costs, material costs, and costs associated with rescheduling or reworking tasks.

Project delays clause with extension of time for delays

This version includes an extension of time for delays.

If the [Company] encounters unforeseen circumstances that delay the [specific project], the project timeline shall be extended by a period equivalent to the length of the delay, provided the [Company] promptly notifies the [Investor].

Project delays clause with definition of “delay”

This version includes a definition of “delay.”

For the purposes of this Agreement, a "delay" shall be defined as any failure to meet the agreed project milestones or deadlines by more than [X] days. Delays caused by force majeure events will be excluded from this definition.

Project delays clause with partial performance acceptance

This version includes partial performance acceptance.

If a delay occurs, the [Investor] may accept partial performance of the [specific project] and approve payments based on the completed work, while the remaining tasks continue towards completion.

Project delays clause with compensation for delays

This version includes compensation for delays.

If the [Company] causes delays that extend the project completion date beyond [X] days, the [Company] shall compensate the [Investor] for the additional costs incurred as a result of the delay, including but not limited to additional labor and material costs.

Project delays clause with cause-specific delay exclusions

This version excludes certain causes of delays.

Delays caused by the [Company]’s own negligence, failure to provide adequate resources, or failure to comply with agreed-upon project specifications will not be considered excusable delays and will result in penalties as outlined in the Agreement.

Project delays clause with force majeure notification procedure

This version includes a force majeure notification procedure.

In the event of a force majeure event, the [Company] must notify the [Investor] in writing within [X] days of the event, providing evidence of the event’s impact on the project timeline and a proposed adjustment to the schedule.

Project delays clause with termination option for extended delays

This version includes a termination option for extended delays.

If the project is delayed by more than [X] months due to reasons other than force majeure, the [Investor] reserves the right to terminate the Agreement with immediate effect, with all outstanding payments due up to the termination date.

Project delays clause with penalty-free extensions

This version includes penalty-free extensions.

If the delay is caused by factors beyond the [Company]’s control, including but not limited to weather conditions or supply chain disruptions, the [Company] shall not be penalized, but the project timeline will be extended accordingly.

Project delays clause with cumulative delay penalties

This version includes cumulative delay penalties.

For each day the project is delayed beyond the agreed completion date, the [Company] will incur a penalty of [X]% of the project cost. If delays accumulate to more than [X] days, the penalty will be applied cumulatively to the entire delay period.

Project delays clause with agreed-upon delay thresholds

This version includes agreed-upon delay thresholds.

The [Company] and the [Investor] agree that a delay of [X] days beyond the agreed completion date will trigger a formal review of the project status. Further delays exceeding [X] days will result in the renegotiation of the project timeline or additional penalties.

Project delays clause with alternative dispute resolution for delays

This version includes alternative dispute resolution for delays.

In the event of a delay dispute, the parties agree to submit the matter to mediation or arbitration, as outlined in Section [X] of this Agreement, before pursuing further legal actions.

Project delays clause with contingency planning for delays

This version includes contingency planning.

The [Company] agrees to maintain a contingency plan to address potential delays in the [specific project]. The plan will identify possible delay scenarios and outline proactive steps to mitigate delays, including additional resources or scheduling adjustments.

Project delays clause with delay review meetings

This version includes delay review meetings.

The [Investor] and the [Company] will hold a meeting within [X] days of any reported delay to review the causes, impact, and proposed solutions. These meetings will ensure timely resolution of any delays and keep the project on track.

Project delays clause with scheduled delay milestones

This version includes scheduled delay milestones.

The [Company] agrees to meet the following project milestones on the specified dates: [list milestones]. Any delays in meeting these milestones will result in a review and potential revision of the project schedule.

Project delays clause with proactive delay tracking

This version includes proactive delay tracking.

The [Company] shall implement a system to proactively track potential delays. If any risk of delay is identified, the [Company] will notify the [Investor] immediately, including the cause and proposed actions to resolve the issue before it affects the timeline.

Project delays clause with no extensions without prior approval

This version requires prior approval for extensions.

No extensions to the project completion date shall be granted without the prior written approval of the [Investor]. Any request for an extension must be accompanied by detailed documentation of the reasons for the delay.

Project delays clause with phase-specific delays

This version includes phase-specific delays.

If the project experiences delays in any specific phase, such as design, construction, or testing, the [Investor] will evaluate whether the delay in one phase impacts the overall project schedule and may approve extensions for specific phases accordingly.

Project delays clause with detailed delay documentation

This version requires detailed documentation for delays.

In the event of a delay, the [Company] shall provide the [Investor] with a detailed written explanation of the cause of the delay, the impact on the project timeline, and any actions taken to prevent future delays.

Project delays clause with extension due to client-side delays

This version includes extensions for client-side delays.

If the [Investor] or any third-party contractors or suppliers cause delays to the project, the [Company] will be granted an extension to the project timeline, with no penalty applied to the [Company] for the duration of the delay caused by such parties.

Project delays clause with escalation process for delays

This version includes an escalation process for delays.

If delays extend beyond [X] days, the [Company] agrees to implement an escalation process, involving senior management from both the [Company] and the [Investor], to resolve the issue and keep the project on track.

Project delays clause with payment deferral for delays

This version includes payment deferrals for delays.

If the project is delayed by more than [X] weeks, the [Investor] may defer a portion of payments due to the [Company] until the delayed portion of the project is completed to their satisfaction.

Project delays clause with specified remedy for delays

This version includes specified remedies for delays.

If the [Company] fails to meet any project deadlines without an approved extension, the [Investor] shall have the right to seek remedies, including but not limited to withholding payments, reducing the scope of work, or terminating the agreement.

Project delays clause with tiered delay penalties

This version includes tiered delay penalties.

If the [Company] fails to meet the project deadlines, penalties will be applied in tiers: a [X]% penalty for delays up to [X] days, [Y]% for delays between [X+1] and [Y] days, and [Z]% for delays exceeding [Y] days.

Project delays clause with time extension due to resource shortages

This version includes time extensions for resource shortages.

If the [Company] faces resource shortages that impact the project, the project timeline will be extended by the duration of the shortage period, provided the [Company] notifies the [Investor] and demonstrates efforts to resolve the issue.

Project delays clause with delay for third-party approvals

This version includes delays due to third-party approvals.

If the [Company] requires third-party approvals or permits for the [specific project], delays in obtaining these approvals will result in an automatic extension of the project deadline by [X] days.

Project delays clause with compensation for delayed project start

This version includes compensation for delayed project start.

If the project is delayed due to the [Investor] not fulfilling their obligations, the [Investor] agrees to compensate the [Company] for any additional costs incurred as a result of the delayed project start.

Project delays clause with right to request delay extension

This version includes a right to request delay extensions.

The [Company] has the right to request an extension to the project timeline if unforeseen circumstances arise, with the approval of the [Investor], who will review the reasons for the delay and the impact on the overall schedule.

Project delays clause with suspension of work for unresolved delays

This version includes suspension of work.

If the project is delayed beyond [X] days and the cause of the delay remains unresolved, the [Company] may suspend work until the delay is addressed and the project timeline is revised.

Project delays clause with delay due to changes in regulatory requirements

This version includes delay due to regulatory changes.

If changes in laws or regulations cause delays to the project, the [Company] will notify the [Investor] and provide an updated timeline reflecting the impact of these regulatory changes.

Project delays clause with alternate dispute resolution for delay issues

This version includes alternate dispute resolution.

In the event of a delay dispute between the [Company] and the [Investor], the matter shall be resolved through alternative dispute resolution (ADR), including mediation or arbitration, before legal action is pursued.

Project delays clause with extension due to public health emergencies

This version includes extensions for public health emergencies.

If a public health emergency, such as a pandemic, causes delays in the project, the project timeline will be extended by a period equal to the length of the emergency, provided that the [Company] notifies the [Investor] within [X] days.

Project delays clause with delay adjustment for seasonal factors

This version includes seasonal delay adjustments.

The [Company] acknowledges that seasonal factors such as weather conditions may impact the project. In such cases, the project timeline will be adjusted to accommodate delays caused by seasonal factors, provided the [Company] notifies the [Investor] in advance.

Project delays clause with penalty for delay in final inspection

This version includes a penalty for delays in final inspection.

If the final inspection of the project is delayed by more than [X] days, the [Company] shall incur a penalty of [X]% of the total project cost for each additional day of delay.

Project delays clause with suspension of payments during delays

This version includes suspension of payments.

If the project is delayed by more than [X] days, the [Investor] may suspend further payments until the [Company] has resolved the delay and the revised timeline has been approved.

Project delays clause with proactive delay mitigation plan

This version includes proactive delay mitigation.

The [Company] agrees to proactively mitigate potential delays by maintaining contingency plans and taking prompt corrective actions. If a delay is anticipated, the [Company] will submit a mitigation plan to the [Investor] for approval.

Project delays clause with agreement for delayed milestone payments

This version includes delayed milestone payments.

If the [Company] fails to meet a milestone, payments associated with that milestone will be delayed until the milestone is achieved. The [Investor] may also reduce payments proportionally if the delay exceeds [X] days.

This version includes external audit rights for delays.

The [Investor] reserves the right to engage an independent auditor to assess the causes of any significant project delays, at the [Company]’s expense. The audit findings will be used to determine the next steps and potential penalties for delays.

Project delays clause with allowable delays for supplier delays

This version includes allowable delays due to supplier delays.

If the [Company] experiences delays due to third-party suppliers or contractors, these delays will be considered permissible and will not incur penalties, provided the [Company] notifies the [Investor] promptly and demonstrates active efforts to resolve the issue.

Project delays clause with contract extension due to delay in permit approval

This version includes contract extension due to permit delay.

If the [Company] experiences delays in obtaining necessary permits or approvals from authorities, the project timeline will be extended by the duration of the delay, with no penalties for the [Company].

Project delays clause with notification requirement for potential delays

This version includes notification requirements for delays.

The [Company] shall notify the [Investor] of any potential delays that could impact the project completion date within [X] days of discovering the issue, along with an updated timeline and proposed actions to resolve the delay.

Project delays clause with penalties for delay in documentation submission

This version includes penalties for delay in documentation.

If the [Company] fails to submit required documentation related to the [specific project] within [X] days of the deadline, a penalty of [X]% of the total project cost will be assessed for each day the documentation is late.

This version includes approval for delay-related extensions.

Any request for an extension of time due to delays must be submitted in writing by the [Company] to the [Investor] and will require the [Investor]’s written approval before the extension is granted.

Project delays clause with requirement for revised budget due to delays

This version includes a requirement for a revised budget.

If the project experiences delays of more than [X] days, the [Company] shall submit a revised budget to the [Investor], reflecting any additional costs incurred due to the delay, including labor, materials, and overheads.

Project delays clause with time-based extensions for unforeseen project circumstances

This version includes time-based extensions for unforeseen circumstances.

The [Company] is entitled to request an extension of the project deadline for any unforeseen circumstances, such as changes in regulations, delays in supply chains, or unexpected technical challenges, with the length of the extension based on the time lost.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

Last updated 18 Mar 2025