Commercial – Justification letter for project delay

Justification letter for project delay

Justification letter for project delay: Sample letter and template

Not another project delay...

The nature of projects is that they have a start and an end date, and a bunch of stuff in between. And that bunch of stuff in between is often complicated, messy, and based on a number of variables - some of which the project parties are in control of and others which they are not.

Because of this, a lot of projects are unfortunately delivered late.

Some projects are delivered late for valid and excusable reasons, while some projects are delivered late because of poor execution or coordination.

What's true of all project delays is that they can have a big impact on project delivery, and can often snowball into other delays and project issues.

One of the forcing function involved in delivering projects on time is that companies most often tie their own estimates and forecasts to what they have scheduled for the project.

So when a company delivers late, they often go over-budget and pay the price. In circumstances where a minor delay results in other delays which cause serious issues for the project, a company can be held responsible for some or all of this.

And this is where justification letters for project delay and general conversation around project delays come in.

They enable parties to justify delays and shift the responsibility off themselves - for things which were outside of their control.

Justifying project delays

So outside of writing an actual letter to justify a delay, what does a good and 'just' justification for project delay actually look like?

There are actually a number of very valid reasons for project delays which are outside of a contractor or subcontractors control.

Asset owners and contractors work together to work some buffer into the plans and schedules so that these delays don't wreak havoc on the plan - but a series of justified delays and issues or a major one can have a profound impact on the project.

Some of the most common reasons captured in a justification letter for project delay include:

  • Adverse weather - A bout of serious or prolonged bad weather can have drastic impacts on everyone on site and the entire project
  • Design changes - Asset owners and architects often make design changes due to unforeseen circumstances or preferences outside of the control of the companies managing construction or project delivery
  • Latent conditions - Exisiting latest conditions or latent defects can require investigation time and rectification which wasn't planned
  • Subcontractor delay - Delays can cause a domino effect on other parties, so a subcontractor delay can lead to other delays quickly
  • Civil commotion or terrorism - Strikes and other civil commotion can bring a site to a standstill, as can terrorism related events
  • Delay in receiving possession of the site - A company can't do much work if they don't have possession of the site
  • Employee strike - An employee strike can cause havoc for projects, and result in major delays and headaches
  • Change in statutory requirements - A change in legislation can result in re-works and changes which require more, less or different work

This is not an exhaustive list of justifiable project delays. I'm sure there have been many justification letters for project delays which feature valid reasons outside of these.

But you can probably see the common theme running through these delays. They are all largely or completely outside of the control of the contractor or subcontractor. They are delays which were not expected, and which were justifiable in the eyes of other project parties.

Which leads us to communicating these delays through justification letters and forms.

Justification letter for project delay template

So before we look at a more traditional justification letter for project delay, let's look at how many construction and project-related companies manage their project delays more effectively - and provide good reasons.

In construction, project delays are accepted and granted as extension of time approvals.

The document below is what one of these physical extension of times looks like.

You'll see that this document resembles what a great justification letter for project delay should look like.

It provides some instructions to the completer, which outlines that supporting documents or 'proof' must be attached.

It then jumps into sections for details regarding the justification letter, including who it's to and who it's from.

Once all of this good stuff is out of the way, the delay letter dives into the causes and reasons for the delay. Outside of identifying the underlying cause of the delay, the document also features sections for when the delay arose, the number of days claimed and the new date for phase or practical completion.

What's also great beyond being able to add all of these justification details is that this form allows for a response from the contractor or asset owner.

Instead of sending letters back and forth or emailing back and forth, two parties can collaborate on this document and come to an agreement as to whether the justification letter for project delay should be approved or denied - and why.

Justification letter for project delay

Use and customise this justification framework for project delays for free.

Justification letter for project delay sample

If you aren't keen on the more streamlined and modern methods of communicating and agreeing to project delays, then you can of course still use the more traditional communication methods in the form of emails and letters.

The sample justification letter for project delay below is a great example of what a simple delay justification letter would look like.

The letter features many of the same components as the justification document above, including all of those project details and a description of the justification.

[Insert Date]

[Insert Recipient Name]

[Insert Recipient Address]

[Contract Number]

LETTER TO [X] FOR DELAY IN PROJECT COMPLETION

This letter is to inform you about the progress regarding the [Project name].

The [Insert reason for delay] means that [X project] has fallen behind schedule by approximately [X].

The project (or specific phase of works) was due to be completed on [Insert date], but because of the delays in project completion, the amended date is [Insert date].

This delay was outside of our control because [Insert reason].

If you have any questions regarding this letter, please call the [X] on [X] or email us at [X].

I hope this provides you with sufficient information.

Signed by,
Authorised Person

The problem with this justification letter for project delay is the problem with letters and emails in general.

They aren't very flexible tools or mediums, so they lack good formatting and structure, and require a lot of manual work and back and forth.

Many companies today use a combination of letters and smart documents to manage their processes. They may use the smart justification letter for frequent and minor delays to save admin and time - and write formal letters for major delays or issues which should be formalised in the form of a letter.

The ideal state for these justification letters for project delays is that they don't exist. No project company wants to cause a delay or have to justify their delay.

But as we have spoken about, many of these delays are outside of the control of any party, and it's important that parties which should not be held responsible for delays which are outside of their control can communicate this and have it accepted by other companies.

And for this, you will need a justification letter for your project delays.

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About Lance Hodgson

Lance is VP of Marketing at Sitemate. His aim is to bring awareness to a brighter future for the Built World where industrial workers and companies work smarter.

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