This paper addresses several concepts associated with construction claims and damages,
including those for delay, disruption, interference, and defective work, and the rights and defenses
available to the various parties in such situations. In discussing those concepts, this paper
presumes a contractual relationship between the disputing parties, and for simplicity, this paper
discusses the concepts in relation to the contractor/owner relationship. In most situations, as in
some of the cases cited in this paper, “subcontractor” can be substituted for “contractor,”
“contractor” for “owner,” etc., when applying the content of this presentation to subcontractor/contractor or subcontractor/sub-subcontractor relationships. There are, of course,
some differences, but those are usually obvious.

The best place to start is with Louisiana’s Civil Code, particularly articles 1994 and 1995.
Simply put, a contracting party is liable under article 1994 for damages resulting from its
nonperformance of a contractual obligation, defective performance of a contractual obligation, or
delayed performance of a contractual obligation. Under article 1995, the loss sustained by the
other party and the lost profit caused by the breach are the damages for which a breaching party is
liable.