How Supply Chain Disruptions Are Fueling New Commercial Lawsuits
Posted November 29, 2025 in Uncategorized
Today’s global economy often means that equipment, materials, and even skilled labor may come from a broad range of domestic and international sources. If any link in the chain breaks down, the result is a supply chain disruption that causes construction delays and cost overruns. Whether the supply chain disruption is due to material shortages, shipping delays, geopolitical events, labor strikes, or natural disasters doesn’t matter to your investors and business partners. Often, all they see is costly delays, and the only way to recoup their investment to be a lawsuit.
In the construction industry, supply chain disruptions derail tight timelines for completion and lead to costly disputes, many of which end up in court. If you’ve been served with notice of a lawsuit for failure to fulfill, or if you’re considering initiating legal action, your first call should be to an experienced Greenwood Village commercial litigation lawyer to explore your options.
How Supply Chain Disruptions Impact Construction Projects
Supply chain disruptions mean you don’t get the supplies you need when you need them, causing costly delays. Contractors may be able to secure replacement materials, but could run into problems if the replacement is subpar to the original materials requested. The customer may reject the replacement, causing further delays. And, depending on the wording of the project contract, the customer may be well within their rights to demand compensation for the delays or substitution of lesser-quality materials.
The ravages of Colorado winters can cause serious structural damage to developments left partially finished. Many contractors base their project timelines around weather; if supply chain disruptions leave the building partially finished and exposed, then the damage may be irreparable. Starting over may be impossible, both financially and practically.
Supply chain challenges touch every phase of construction developments, from initial development to timelines for subcontractors. Each delay may carry legal consequences.
Legal Remedies for Contract Delays
Those affected by supply chain disruptions may have grounds to file a lawsuit for breach of contract, and even if the materials delay is due to circumstances out of the contractor’s control, they could still be held liable for losses, depending on how the contract is worded.
Many construction contracts carry penalty clauses, come into effect under specific conditions. In addition to the delay penalty clause, if the contractor is unable to secure materials within a specified time, then they can be considered in breach of the contract and subject to liability.
On the other hand, the contract may be worded in such a way to protect the contractor from penalties if the supply chain issue is due to an act of God, act of nature, or act of war (and similar unforeseen, yet unpreventable, circumstances). This can excuse the contractor from legal penalties for failure to perform.
How a Commercial Litigation Lawyer Can Help Protect Your Investment
The wording of the contract often contains possible remedies for supply chain disruptions. At Volpe Law LLC, we first review all contracts and business agreements pertaining to the project, including those between contractors and investors, subcontractors, and materials and labor suppliers.
If the contractor is protected by language that prevents a lawsuit due to unforeseen supply chain disruptions, then as an investor, there may be little you can do. However, each contract is different, and not all contain these protections. Whether you’re the contractor being threatened with a lawsuit for breach of contract or the investor or property owner facing financial losses due to supply chain disruption, your first call should be to our Greenwood Village, CO commercial litigation lawyer for a legal assessment and exploration of your options.