Missing contractual deadlines to submit notices, change orders, or time extensions can cost contractors millions. One contractor lost a $1 million claim because they missed the notice deadline. Contracts often demand notice within days, then change orders and extensions within more days, making compliance nearly impossible and forfeiting payment.
Chapters
Failing to submit notices is the most expensive mistake in construction, in my view. I've seen one missed notice cost $1 million. The claim was for $1 million that they didn't get paid for. And so what a notice means is in the contract, if you've been delayed or if there's been a change, you are required to submit a notice to say that this has happened, right? And it has to be in a specific time period. And then after that, you got to submit your change order or your variation, or you got to submit your EOT. Within another certain amount of days. If you don't follow that process, you potentially are not getting paid because you've not followed the contract. Or if the client has made that process ridiculous where it's 1 day to submit the notice and you got 4 days or 3 days to submit your change order or EOT, that you gotta change it as well because that's not something you can actually comply with over the project.