DELAYS IN EXECUTION OF BUILDING PROJECTS AND THEIR FINANCIAL CONSEQUENCES FOR CONTRACTORS - POLISH VIEW

Abstract

The execution of building projects should be planned in a realistic time, at the assumed cost and quality, and take into account the risk of the contract parties. However, even the best-planned construction projects are exposed to the risk of delays. The article reviews causes of delays in the construction projects identified both in the world and in Poland. The consequences of delays, regardless of the responsible party, should be clearly spelled out in the contracts. Financial penalties for delays are commonly used in agreements for construction works, and their level, according to the presented analyses, is usually higher in the public than in the private sector. Attention has been also paid to the few models presented in the literature that make it possible to predict delays and prevent their effects. It seems that this is an interesting direction for further research.