⚡ When Your Client Becomes Your Biggest Project Risk
Having negotiated $100M+ energy infrastructure deals at General Electric, I’ve witnessed how buyer-caused delays can turn profitable projects into financial disasters:
Projects are notorious for delays that drive up both timelines and costs. But when the cause of delay stems from the buyer—be it flawed designs, funding shortfalls, unfinished interdependent work, or late approvals—the stakes grow exponentially higher.
Can the seller still deliver on time? Can they recover the added costs? More critically: does the contract protect them when the buyer’s own actions block progress?
Understanding buyer-caused delays can be the difference between financial ruin and a project back on track.
The Fortune 500 Reality of Buyer-Caused Project Delays
When buyers cause delays, time is money—and both are usually on your dime
After handling billions in complex infrastructure projects where interdependencies create cascading delays, I’ve learned that buyer-caused delays are often the most expensive—and most preventable—project risks.
“During any project, delays occur which increase both the timing for completion and costs. The party causing the delay is usually responsible for the additional costs. Frequently, the delay or “an act or omission” is caused by the buyer and will prevent the seller from performing its scheduled activities. Examples of buyer caused delays include (1) defects in the buyer’s design, (2) the buyer not having money to pay the seller, (3) the buyer being late completing interconnecting project work, or (4) the buyer being late returning submittals that require the buyer’s review and approval. The seller should be able to freely perform its scope of work without interference, especially from the buyer. If the buyer causes a delay, then the seller is usually entitled to both schedule and cost relief from the buyer. Note that buyer caused delay may also be a compensable event under the force majeure clause.”
Attorney • GE Energy Infrastructure Veteran • Fortune 500 Project Delay Expert
⚖️ The Four Deadly Types of Buyer-Caused Delays
📐 DESIGN DEFECTS
Flawed buyer-provided designs force costly rework, design revisions, and project restarts—often discovered only after significant work has begun.
💰 FUNDING SHORTFALLS
When buyers can’t pay, contractors face cash flow crises, supplier payment delays, and potential project shutdown while still responsible for ongoing costs.
🔗 INCOMPLETE DEPENDENCIES
Late completion of buyer’s interconnecting work creates domino effects, idle labor costs, and compressed schedules for remaining tasks.
📋 APPROVAL BOTTLENECKS
Slow buyer review and approval processes halt progress, extend project timelines, and increase overhead costs while teams wait for clearance.
📋 Case Study: When Buyers Refuse to Accept Delivery
This is exactly the type of buyer breach pattern I’ve helped clients recognize and respond to across industries:
🌾 The Grain Delivery Standoff
The seller contracted to deliver 99,000 bushels of grain and had already delivered over 24,000 bushels when the buyer stopped accepting further deliveries.
Despite repeated requests from the seller for delivery instructions, the buyer delayed with vague responses. The seller faced mounting storage costs, deteriorating product quality, and potential loss of the entire shipment.
The Breaking Point: Eventually, after legal consultation, the seller formally notified the buyer that they were terminating the contracts due to the buyer’s breach.
Classic buyer delay tactic: Create ambiguity and vague responses while shifting all risk and cost to the seller.
Legal Strategy Insight: In my 25+ years handling supply chain and delivery contracts, I’ve seen this pattern across industries—from grain deliveries to energy equipment installations. The key is recognizing the breach pattern early, documenting every communication, and having clear contract language that defines buyer responsibilities and seller remedies. Most companies wait too long to take action, allowing storage costs, deterioration, and opportunity costs to mount. The winners act decisively with proper legal backing.
⚡ The Cascading Costs of Buyer-Caused Delays
When buyers stall, delay, or refuse to perform, time is not on your side.
Every day of buyer-caused delay creates compounding costs: idle labor, extended overhead, storage fees, missed opportunities, and potential breach penalties you never expected to face.
💸 Direct Financial Impact
Extended project timelines, idle resources, storage costs, and potential penalties while buyer delays resolution.
📉 Opportunity Costs
Missed new projects, damaged client relationships, and reduced capacity for profitable work while tied up in delays.
⚖️ Legal Complications
Breach determinations, contract termination risks, and costly dispute resolution proceedings.
Project Reality: In energy infrastructure projects, buyer delays don’t just cost money—they can shut down entire power generation facilities and leave communities without electricity. Fortune 500 companies build ironclad protection against buyer-caused delays because they understand the cascading consequences. Your projects deserve the same level of protection.