Delay can happen in any relationship; what is decisive is not the delay itself but how it is managed. A delay notified in time gives the client the chance to produce an alternative; a delay learnt of on the last day brings down all the dependent processes together.
Duty to notify
A risk of delay is notified the moment it arises. Waiting to see is not an option. The obligation is in writing.
The value of early notice
Early news gives the client the chance to produce an alternative. The loss is limited. The gain is mutual.
Content of the notice
How long the delay will be and its cause are written in concrete terms. A vague notice is of no use. The content is clear.
Offering an alternative
Narrowing the scope or partial delivery may be proposed. Merely reporting a problem is not enough. A solution is produced.
The option of partial delivery
The sections that are complete can be delivered first. The client starts its process. The loss is reduced.
The cause of the delay
On which side the cause lies is determined. The consequences vary accordingly. The distinction is kept.
Delay caused by the client
A late document and an unanswered query are not taken as a basis for sanctions. The record shows this. The rule is fair.
Proof by record
The dates of queries and answers are on record. Argument is resolved by the record. An archive is kept.
Sanction provisions
The sanction to be applied in the event of delay may be written down. The rate is kept proportionate. The balance is preserved.
The principle of proportionality
The sanction is proportionate to the fee for the job. An excessive provision poisons the relationship from the start. Moderation is observed.
Upper limit
A cap is placed on total sanctions. Unlimited liability cannot be borne. The article is written in a balanced way.
Exemption for short delays
Delays that do not exceed a certain length may be left outside sanctions. The threshold is written down. Flexibility is tied to a rule.
Reciprocity
Late payment by the client is regulated too. A one-sided provision is unbalanced. The principle is kept.
The effect on later jobs
A single delay does not end the contract. Persistent breach is dealt with separately. The distinction is written down.
Persistent breach
Repeated delay may be a ground for termination. The threshold is defined. The process becomes predictable.
Root cause analysis
After a delay its cause is examined and measures are taken. Recurrence is prevented. The examination is kept short.
How it feeds into measurement
Delays are entered in the on-time delivery indicator. The trend is monitored. Data builds up.
Compensatory arrangements
Some contracts provide for compensation such as priority on the next job. A non-monetary solution is possible too. The option is written down.
Recovery schedule
After a delay the new delivery date is given in writing. An open-ended postponement is not accepted. The date becomes clear.
Management is what decides
In practice most clients are troubled less by the delay itself than by not being told; the same delay turns into a manageable situation when it is notified in advance, and into a question of trust when it is learnt of at the last moment. That is why notification comes before sanctions. The rule is built accordingly.
Limits of legal information
What is described here is for information purposes and does not replace a legal opinion. The text is passed through the legal department before it is signed. The limit is stated.