When Is A Construction Delay Or Disruption Worth A Lawsuit?

In California’s high-value real estate market, a construction delay or a disruption in the project timeline can cost property owners tens of thousands of dollars or more. A construction delay lawsuit can provide compensation for lost rental income, the inability to use your property or construction rework needed due to the property sitting dormant.

Michael P. Ring & Associates, located in Santa Barbara, provides clients with comprehensive construction law representation. Attorney Ring completed a successful construction industry career prior to law school and has more than 40 years of experience evaluating construction defects and delay situations as an attorney. He regularly represents plaintiffs in construction delay cases, as well as defect cases involving toxic mold, expansive soils, design deficiencies and substandard workmanship.

Why Construction Delays And Disruptions Happen In California

California is facing a number of urgent constraints on the construction industry. The state is simultaneously weathering:

• Strong demand for reconstruction after the 2025 Palisades and Altadena wildfires
• Pressure on construction labor availability due to enhanced federal immigration enforcement
• Demand in Los Angeles ahead of the 2028 Summer Olympic Games for public facility upgrades
• Equipment and materials shortages related to tariffs or shipping blockades

Contractors and owners must factor in these realities when developing contracts for construction projects. Our attorney can counsel you if an existing project is delayed. His prior construction industry experience helps him evaluate delays and separate unavoidable pauses from those stemming from negligence, thus being a cause of action for a lawsuit.

Understanding Excusable Versus Nonexcusable Delays

In general, excusable delays are the result of forces beyond the party’s control. Contractors may be delayed by severe weather or supply shortages. Nonexcusable delays can be due to inefficient management, improper supervision of subcontractors or miscommunication between the contractor and subcontractors. Attorney Ring advises clients that property owner behavior will also be evaluated. If, for example, the owner made the property inaccessible to the contractor for a period of time, that could be seen as a nonexcusable delay and impact how the court views the source of the slowdown.

Your Rights As A Property Owner Under California Civil Code § 8850

Effective January 1, 2026, California Civil Code § 8850 (enacted via the Private Works Change Order Fair Payment Act) establishes a mandatory four-step change order claim resolution process for private commercial and multifamily construction projects (excluding detached single-family homes and low-rise residential structures of four stories or fewer).

The new law requires property owners and contractors to follow a four-step process to resolve your delay claim:

1. The contractor may submit a construction delay claim to you by certified mail. This claim will include reasons for the delay and a request for extra time to complete the work. It may also include a request for payment for work already completed but unpaid.
2. You have 30 days from the date of the certified letter from the contractor to respond in writing. Your response must detail which parts of your project are undisputed and which are disputed. After you file the response, you have 60 days to pay for undisputed completed work. A 2% monthly interest rate will apply to any undisputed amounts that remain unpaid after 60 days.
3. If you deny the claim or fail to respond within 30 days, the contractor may demand an informal “meet and confer” conference, which you must schedule within 30 days. Within 10 business days after the conference, the owner must issue a written statement identifying any remaining disputed and undisputed portions of the claim.
4. If disputed items remain after the conference, the matter proceeds to mandatory nonbinding mediation. The parties have 10 business days to mutually select a mediator; if no agreement is reached, statutory default selection rules apply to name the mediator.

The parties can bypass the mediation requirement by mutually agreeing to take the case to binding arbitration or litigation.

One of the most challenging aspects of the new law is that it removes a property owner’s ability to compel contractors to keep working through “duty to proceed” clauses in construction contracts. If an owner fails to pay undisputed amounts within 60 days or fails to follow statutory timeline requirements, the contractor may issue a 30-day notice followed by a 10-day notice of intent to suspend work without penalty under Civil Code § 8850.

These changes in the law have made delay/disruption cases more confusing than ever. By hiring our attorney at Michael P. Ring & Associates, you’ll receive responsive, knowledgeable representation. Attorney Ring will draft responses challenging the contractor’s version of events and represent your rights at the “meet and confer” conference, nonbinding mediation and any hearings in arbitration or litigation.

Preserve Your Ability To Take Action On A Delay Claim

Losing the opportunity to recoup damages for construction delays or disruptions can be devastating financially. Property owners should take the following steps to ensure they can pursue claims related to construction delays or disruptions.

1. Update contract templates to align with the timelines stipulated in California Civil Code § 8850. You or your staff will need to review initial contractor claims and issue responses within the 30-day window.
2. Split payment claims internally into disputed and undisputed categories. Don’t hold up a $50,000 payment because $1,500 is disputed.
3. Review owner-side delays to the project and minimize them. If your case reaches litigation, the court will look carefully at the causation of critical delays.
4. Track all project documentation. Keep your contract, addenda, timelines, change orders and written communication with the contractor organized and safe.

Legal changes in California do not have to derail your legitimate construction delay claim as a property owner. Our attorney can help you fight for compensation and counter unverified contractor claims.

Why Work With Our Attorney?

Attorney Michael P. Ring brings a unique blend of industry-specific construction experience, substantial credentials as a trial lawyer and an impressive roster of former clients, demonstrating his ability to oversee complex construction delay litigation.

Our attorney has litigated across the state of California at the state, federal and appellate levels. He has litigated against major multinational corporations, including Chevron, General Motors, Merrill Lynch and Computer Associates, and represented firms that include Georgia-Pacific Corporation, National Property & Casualty Insurance, Pub Brewing Company, Radio Santa Barbara and Rehau, Inc.

Beyond construction law, our attorney argued and prepared briefs for cases related to real estate, probates and trusts, as well as personal injury. His reputation in the courtroom is well known in the California Trial Lawyers Association, Los Angeles Trial Lawyers Association and American Association for Justice; he is a member of all three organizations. He is the author of three published appellate decisions:

• Taylor v. Lockheed Martin Corp., 113 Cal. App. 4th 380 (2nd App. Dist. 2003)
• Visueta v. General Motors Corp., 234 Cal. App. 3d 1609 (2nd Dist. 1991)
• In re Price, 871 F.2d 97 (9th Cir. 1989)

Another valuable aspect of working with our firm is attorney Ring’s deep experience as a mediator. He has helped clients reach settlements in many types of civil claims. He has represented mediation clients before arbitration boards, including the New York Stock Exchange, the National Association of Securities Dealers and the Pacific Stock Exchange, so he understands how arbitration works and the best strategies for securing an optimal result.

Start Your Journey Of Recovery From Construction Delays Today

Don’t let construction or renovation of your dream property become a nightmare of delay and disruption. Call Michael P. Ring & Associates at our offices in Santa Barbara at 805-564-2333 to request a consultation or reach us online through our contact form.