Builders want to finish construction of new homes as quickly as they can because delays cost them money.  But most of us suffer from delay in receiving possession of newly constructed homes resulting in increase in servicing cost of home loans, change in plans and anxiety.  Most delays are caused by weather, contractor problems, financial shortfalls, government or municipal delays, irregularities or inexperience.  

Your new home could suffer from one or several of these.  The goal is to try to find out the real reason for the delay, determine the probability of the problems continuing and develop a cost-effective way of dealing with the time and money issues that the delay might create. 

First, check as best as you can on the excuses the builder gave for the previous delays.  Check dates with the local building departments, check inspection cards and talk to contractors on the site.  Next, ask the builder to put in writing the estimated possession date of your new home and identify any potential problems that the builder suspects might create future delays.  Understand this delivery date will probably be an estimate unless the builder is willing to commit to a hard date. 

Once you have identified the possible delay issues and the date, ask the builder if he will be willing to agree to a financial penalty for any future delays caused by something other than the items listed in the possession letter.  If the builder hesitates, it may be an indication he isn’t telling you all he knows. 

Always get a reasonably worded delay penalty in the contract before you sign.

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