Understanding Delay: Excusable, Compensable, or Just Painful?

Why knowing the type of delay matters more than knowing the critical path

I still remember a progress review where the planner marched in with a 20-page Primavera printout. The contractor was swearing that “heavy rains stalled everything, sir — not our fault.” The employer’s rep shot back: “But your labour strike isn’t my problem.”
By the end of the meeting, the chart was torn, tempers were frayed, and the only thing delayed further was the chai break.

Sound familiar? Welcome to the world of delay claims.

What Delay Really Means (in Plain English)

Not every delay is the same. How you label it decides who picks up the tab:

• Excusable Delay → You get time, but no money. (Example: floods, political unrest, force majeure.)

• Compensable Delay → You get time + money. (Example: late site handover, employer-caused changes, missing approvals.)

• Non-Excusable Delay → Your headache, your bill. (Example: poor planning, labour shortage, equipment breakdown.)

The contract may not call it “excusable” or “compensable” in neon lights — but those are the buckets every tribunal, arbitrator, or claims consultant will quietly drop your story into.

Why This Becomes a Battle

On site, every slippage is branded “delay.” But when disputes land on the table, the type of delay decides:

• Who bears the cost (employer or contractor).

• Who grants the extension (and whether LDs fall away).

• Who ends up red-faced in front of the board.

That’s why simply shouting “EOT!” without classification usually sinks the claim.

What Arbitrators Look At

• Causation → Was it the employer’s act/omission or the contractor’s fault?

• Concurrency → Were both sides late at the same time? (the messiest one).

• Proof → Site diaries, weather logs, RFIs, inspection reports, even WhatsApp instructions — if it’s not on paper, it didn’t happen.

On one hydropower project, the contractor claimed 90 days’ “force majeure” for floods.
Employer countered: “Sure, but only 40 days were floods. The other 50 were your crane breaking down.”
The Dispute Board split the baby: 40 days excusable (no costs), 50 days non-excusable (LDs applied).

Contractor left with an EOT — but also a hole in the pocket.

Not all delays are created equal. Before you fight about how long, fight about what kind.