Potential Categories of Delay Damages
As set out above some delays are compensable and allow for an owner contractor or subcontract to receive additional compensation or damages. Potential areas for recovery that can be considered depending upon the terms of the contract are as follows:
(a) Liquidated damages;
(b) Lost rental or use value of completed building; Huntsville ElksClub v. Garrity-Hahn Building Co., 176 Ala. 128, 57 So. 750 (1912);
(c) Cost of leasing substitute building; Bevis Const Co. v. Kittrell, 243 Miss.549, 139 So.2d 375 (1962);
(d) Additional financing costs on construction or permanent loan; Roanoke Hosp.Ass’n v. Doyle Russell, Inc. 215 Va. 796, 214 S.E. 2d 155 (1975);
(e) Actual costs for equipment that was rented
(f) Costs for contractor owned equipment – Association of General Contractor’s formula reduced by 50% for idle time. L. L. Hall Const. Co. v. U. S., 379 F.2d 559 (Ct. Cl. 1966).
(g) Escalation of wages, rental costs, materials, etc.
(h) Additional bonding or insurance costs
(i) Profit
(j) Overhead – use of the Eichleay formula. Mech-Con v. West, 61 F. 3d 883 (Fed. Cir. 1995).
(k) Interest – The law in Alabama allows an argument for interest at 6% per annum for the loss of earning power related to the amount of the claim. See Ala. Code § 8-8-1 (1975); Shook & Fletcher Insulation Co. v. Central Rigging, 684 F.2d 1383 (11th Cir. 1982) (“Alabama law authorizes the award of prejudgment interest on Shook & Fletcher’s claims.”); see also, E. C. Ernst, Inc. v. Koppers Co., Inc., 626 F.2d 324 (3rd Cir. 1980).
