Which type of delay occurs when the contractor is entitled to additional money and/or time?

A compensable delay occurs when a contractor is entitled to receive additional money and/or time due to factors that are typically outside their control, but for which the owner or a third party is responsible. This type of delay usually arises from situations such as changes in project scope, unforeseen site conditions, or delays caused by the owner or their agents.

In these scenarios, because the contractor is impacted by events that hinder their ability to perform as originally scheduled, they can claim compensation for the extra costs associated with the delay, as well as an extension of time to complete the work.

Understanding compensable delays is crucial for effectively managing project timelines and budgets, ensuring that contractors are fairly compensated for disruptions that affect their performance on the project. This contrasts with other types of delays, such as excusable delays, which may provide an extension of time but not additional compensation, or nonexcusable delays, where the contractor is not entitled to either time or money due to their own negligence or failure to plan appropriately.