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Construction

Contractor delay

This can change development yield, consent pathway, purchase price, funding, construction cost, settlement timing, or legal risk. Treat it as a decision point, not background noise.

Construction phaseHighcontractor delayprogrammeconstructionbuilderLast reviewed 11 August 2026

What it looks like

  • Builder misses programme milestones, trades are not on site, inspections are missed, or completion moves out.

Likely causes

  • Poor planning
  • weather
  • material delays
  • subcontractor shortage
  • variation/design delays
  • cashflow dispute

Immediate action

  1. 1Pause the affected decision or commitment until the issue is understood.
  2. 2Record the issue in the risk register with date, source, owner, and next action.
  3. 3Send the relevant documents to Builder, Project manager, Developer and ask for written advice.
  4. 4Update feasibility, programme, budget, and decision register if cost, time, yield, consent, title, finance, or sales assumptions may change.

Step-by-step solution

  1. 1Define the problem in one sentence and identify which project decision it affects.
  2. 2Check the controlling documents: Construction programme, Site reports, Contract, Delay notices, and related project records.
  3. 3Ask the responsible professional to confirm whether the issue is real, minor, manageable, or project-changing.
  4. 4List the available options: redesign, renegotiate, seek consent, add cost allowance, change programme, change sales strategy, or abandon.
  5. 5Price and programme each option using the current feasibility model.
  6. 6Make a written decision with source references and approval from the developer or project owner.
  7. 7Notify affected parties such as lender, lawyer, consultants, builder, agent, buyer, or council when required.

What not to do

  • Do not rely on a seller, agent, or builder comment when a planner, lawyer, accountant, engineer, surveyor, valuer, lender, or council needs to confirm it.
  • Do not hide the issue from the feasibility just because the project looked profitable yesterday.
  • Do not waive due diligence, lodge consent, sign a contract, approve a variation, or promise settlement while the issue is unresolved.
  • Do not give legal, tax, finance, planning, engineering, or council advice to others unless a qualified professional has confirmed it.

Verification

Source / where to check

Use current official information and the controlled documents for the actual project.

MBIE guidance explains that work should be built to the issued building consent, inspections must be managed, and records/certificates should be kept for CCC.

Use WorkSafe NZ for construction health and safety duties, risk management, and practical guidance for residential construction work.

Relevant professional advice

Planner, surveyor, architect, engineer, quantity surveyor, lawyer, accountant, lender, valuer, real estate agent, and other project specialists must confirm site-specific decisions.

Project-specific consented documents and professional advice override generic guidance.

Cost impact

Medium to high from holding costs, finance, supervision, and possible sales/settlement impacts.

Programme impact

High because delays can affect CCC, title, settlement, and buyer commitments.

Risk level

High

Compliance and contract impact

Check whether the issue changes the resource consent pathway or conditions, building consent documents, consultant scope, sale and purchase conditions, finance terms, construction contract scope, notice requirements, variation process, or settlement obligations.

Example email / decision wording

Subject: Contractor delay — advice and decision required. We identified this issue during construction phase. The current evidence is listed in the attached record. Please confirm the controlling requirement, available options, cost/programme implications, further information needed, and whether any consent, contract, funding, or settlement action must pause. No assumption has been approved pending written advice.

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