Fraud by contractor: Delay

Example:  Contract requires contractor to pay Road Agency delay damages if contractor completes road late (unless delay is RA’s fault).  RA provided drawings to contractor late (RA’s fault).  However, this did not actually delay contractor, as contractor suffered an even greater delay due to asphalt supply shortages (contractor’s fault).

• Contractor claims from the RA extension of time to complete project based on the late drawings delaying completion (even though contractor knows they did not).
• Contractor conceals from the RA information as to the asphalt delay (which was the true cause of delay).

Fraudulent acts by the contractor:

• Providing false reasons to the RA for the delay.
• Concealing from the RA information on the true cause of the delay.

Result:

• Contractor wrongfully escapes paying delay damages.
• RA receives road late, and does not get benefit of delay damages.