Construction Delays, Litigation Can Follow Hurricanes: A Guide for Property Owners

When a hurricane tears through a community, the damage left behind can feel overwhelming. For property owners, the priority is to get repairs done quickly so that life and business can return to normal. But too often, homeowners and business owners face months of waiting as construction drags on—or worse, never gets completed at all.

This raises a pressing question: If repairs are delayed after a hurricane, do property owners have legal recourse against the contractor or construction company?

The Legal Landscape of Post-Hurricane Repairs

After a hurricane or other weather event, the typical rebuilding process begins with filing an insurance claim. Once the claim is approved, property owners hire contractors to perform the actual rebuilding or repair work. Ideally, this happens smoothly, but reality often looks different. Construction can be delayed for a multitude of reasons after a major storm.

Common causes of delay include:

• Labor shortages as skilled workers are in high demand after a major storm;
• Material shortages caused by supply chain disruptions;
• Local permitting backlogs when thousands of residents need approvals at once; and
• Contractor misconduct, such as overbooking projects or failing to manage resources.

Not every delay is legally actionable. Some are unavoidable results of widespread disaster recovery. Others, such as fraud, abandonment, or misuse of funds, may give the owner a right to bring a claim against their contract.

Contract Rights and Responsibilities

A well-written construction contract is your best tool to protect your rights as a property owner. A good construction agreement should outline:

• The scope of work (in as much detail as reasonably practicable);
• Project deadlines or estimated timelines;
• Payment schedules; and
• Remedies if the contractor fails to deliver in accordance with the contract.

Most contracts also include “force majeure” clauses, which excuse performance delays caused by unforeseen events outside the contractor’s control. Hurricanes often fall into this category, but the clause cannot be used as a blanket excuse for every delay. In fact, if the contract is entered into after a storm, a contractor cannot rely upon a force majeure clause for delays caused by or related to the storm that were foreseeable at the time the parties entered into the contract. By way of example, if there are major labor shortages, the contractor likely was aware of that issue at the time he/she entered into the contract. Thus, the contractor would not be able to argue that the labor shortage is the cause of his delay in meeting the proposed schedule.

Unfortunately, after a major storm, many “contractors” come in to take advantage of the abundance of available work. These companies are commonly referred to as “storm chasers.” While not all of these companies are problematic, issues arise when contractors engage in bad-faith practices, such as:

• Taking deposits and failing to start work;
• Misrepresenting how quickly repairs can be completed; or
• Accepting more projects than they can realistically handle.

These situations may form the basis of a legal claim, even if general storm-related delays are otherwise unavoidable.

When Delay Becomes a Breach of Contract

In order for a delay to be actionable under the parties’ contract, it must rise to the level of a “material breach.” Not every delay in a project qualifies as a material breach of the parties’ contract. To rise to that level, the delay usually has to be material, meaning it goes beyond minor setbacks and significantly harms the property owner.

To bring a strong claim, owners must be able to prove that the delay is material and that the delay caused them direct harm. Usually, they should have at least the following information and documents to support their claim:

• A detailed project timeline;
• Written communications with the contractor, including any required notice(s) under the contract; and
• Evidence of financial losses, such as additional rent or other costs resulting from the delay.

Legal Claims for Delayed Repairs

When repairs drag on longer than reasonably expected, certain legal claims may be available to property owners.

• Breach of contract: If the contractor fails to meet agreed-upon deadlines or unreasonably extends the timeline, it can amount to a contractual breach.
• Fraud or misrepresentation: Delays tied to false promises, such as misrepresenting workforce availability or material access, can form the basis of a claim.
• Statutory remedies: Some states provide specific protections for homeowners facing construction delays. In Florida, if a contractor takes more than 10% down on a construction job, they must apply for permits within 30 days of payment and start work within 90 days of permit approval, unless there’s a written agreement or just cause. Violations of these requirements can lead to civil or even criminal penalties.

Other construction-related claims may apply in different contexts, but here we’re focused on when delays themselves create a legal cause of action.

Damages You May Recover

The damages available in delay cases are more limited than in broader construction disputes, but they can still help owners recover significant losses. Courts typically look at what losses were directly caused by the contractor’s failure to perform on time.

• Direct damages: The cost of completing the work if the contractor abandons the project or fails to finish within a reasonable period.
• Consequential damages: Financial harms tied to the delay itself, such as additional rent or hotel stays while repairs are unfinished, or lost rental income when a property cannot be leased out.
• Liquidated Damages: Some contracts allow for the recovery of liquidated damages for delays in completion of a construction project. In some cases, a contractor can be charged for each day that a project is delayed.
• Statutory damages or fees: In some states, contracts or consumer protection statutes may allow recovery of attorney’s fees or specific delay-related penalties.

Practical Steps Before Filing Suit

When faced with a potential construction dispute, litigation should not be the first step. There are practical actions a party can take to try to resolve the issues short of costly litigation, including:

1. Document everything – Keep contracts, receipts, text messages, emails, and photos of progress (or lack thereof).
2. Send a demand letter – Many states require a formal demand before filing suit, and sometimes this alone prompts action. In Florida, for example, a pre-suit demand under Chapter 558 must be sent prior to initiating any legal action for a “construction defect.”
3. Explore presuit negotiation or mediation– Some contracts require these steps before going to court. Oftentimes, if parties can sit down and work through a dispute, a resolution can be reached without costly litigation.

Challenges in Construction Litigation

Even with a strong case, pursuing a construction claim based upon delay or other issues has its hurdles:

• Burden of proof: the claimant must show that delays were avoidable and not solely caused by unforeseeable circumstances outside of the control of the contractor.
• Contractor insolvency: If a contractor goes out of business, recovery may be limited.
• Collective challenges: Following major storms, many homeowners sue the same contractors, which can overwhelm courts, extend timelines, and may even force certain contractors out of business.

It is important to understand your rights and potential hurdles before you undertake litigation over a construction claim. Consulting with a lawyer early regarding even a potential claim is the best way to ensure you are set up for success on any future claim.

Legal Recourse and Practical Protection

So, can you bring an action if your project is delayed after a hurricane? Yes, property owners can sue for delayed repairs after a hurricane if the delay amounts to a material breach of the parties’ contract. The success of such claims depends heavily on having a clear contract, strong documentation, and an understanding of which delays are legally actionable versus those that are not.

Litigation should be viewed as a last resort, but it is an available tool for holding contractors accountable. The best protection comes from careful contracting upfront and seeking early legal guidance if and when problems arise. With the proper preparation, homeowners and businesses stand a far better chance of protecting their rights and moving forward after a storm.

Attorney Stephen Schahrer is a shareholder at Boatman Ricci, a law firm with offices in Tallahassee and Naples.

Topics Lawsuits Catastrophe Natural Disasters Hurricane Property Construction