What If A Client Delays Your Project?

Alex Solo
byAlex Solo10 min read

Aroha runs a small web design studio in Wellington. She books in a six-week website project, lines up her designer and developer, and gives the client a clear list of what she needs by week two: product photos, login details, brand files and content approvals.

Week two comes and goes. The client is busy, the photos aren't ready, and the content is still being debated internally. By week five, the client is asking why launch day has moved.

If you run a consultancy, agency, software studio or other project-based service business, this situation can feel painfully familiar. You can do excellent work and still miss a deadline because your client hasn't given you the information, feedback or access you need.

The good news is that your contract can deal with this upfront. Clear client dependency clauses, timeline extension rights, extra fee clauses and pause rights can make the difference between a stressful project and a manageable one.

Can You Extend A Project Timeline If The Client Is Late?

Yes, you can usually extend a project timeline if your contract clearly says the deadline depends on the client doing certain things on time.

Without that wording, you may still have arguments available under general contract principles, but it can be much harder to manage expectations and recover extra costs. A written project timeline delay clause gives you something practical to point to when the client misses a deadline for information, approvals or access.

For example, your service agreement might say that:

  • your delivery dates are based on the client meeting their input deadlines
  • if the client is late, your deadlines move by at least the same period of delay
  • you aren't responsible for missed milestones caused by the client's delay
  • you can revise the project schedule if the delay affects resourcing or sequencing

This is especially useful where your work has a clear order. A marketing agency might need brand approval before campaign assets can be designed. A software developer might need API access before integration work can begin. A consultant might need financial data before preparing a report.

If the client delay affects more than one stage of the project, you may need more than a day-for-day extension. For example, a two-week delay from the client could push your work into a period where your team is already committed elsewhere. Your contract can allow you to provide a revised delivery date that reflects your actual availability.

What Is A Client Dependency Clause?

A client dependency clause says that your ability to deliver the project depends on the client giving you certain things by certain times.

Think of it as the contract version of saying, I can do my job, but I need you to do your part too. It's one of the most useful clauses for project-based service providers because it turns an awkward conversation into a clear process.

A strong dependency clause will usually cover:

  • Information: documents, data, brand guidelines, product details, technical specifications or other materials you need
  • Access: logins, systems access, staff availability, premises access where relevant, or access to third party platforms
  • Feedback: comments, revisions and decisions within agreed timeframes
  • Approvals: sign-off from the right person before you move to the next stage
  • Accuracy: confirmation that the materials the client provides are complete, current and not misleading
  • Authority: confirmation that the person giving instructions can bind the client

A dependency clause works best when it's specific. A vague line saying the client must cooperate is better than nothing, but it may not be enough when you're trying to manage a live project.

For example, compare these two approaches:

  • Too vague: The client will provide all assistance reasonably required.
  • More useful: The client must provide the brand assets, product information and written approval requested in the project plan by the dates listed in that plan. If the client doesn't do so, the delivery dates and fees may be adjusted.

Your dependency clause doesn't need to be harsh. In fact, the best clauses feel fair because they tell everyone what is needed before the project starts.

What Client Obligations Should Your Consulting Contract Include?

Your consulting contract should include the practical things your client must do so you can deliver the work properly and on time.

Client obligations aren't just legal filler. They're project management tools. If your contract lists what the client has to provide, you're less likely to end up chasing missing materials with no leverage.

Common Client Obligations

Depending on your project, you may want your contract to say the client must:

  • give you accurate and complete information
  • respond to requests within a set timeframe, such as five business days
  • provide access to relevant systems, platforms, IT services or people
  • arrange internal approvals before asking you to proceed
  • review drafts carefully and give consolidated feedback
  • tell you promptly if their requirements change
  • make sure supplied materials don't infringe another person's intellectual property rights
  • comply with privacy policy and confidentiality obligations when sharing data with you
  • pay invoices on time, even if a delay has affected later stages of the project

The right obligations depend on the kind of work you do. A branding studio may care most about approvals and copyright in supplied images. A CRM consultant may need access to customer data and admin permissions. A business coach may need honest financial information and attendance at scheduled sessions.

Make One Person Responsible

It's often sensible to require the client to nominate one project contact. That person can give instructions, approve work and collect feedback from the client's team.

This helps avoid the classic problem where three people send conflicting comments and nobody has authority to sign off. Your contract can say you're entitled to rely on instructions from the nominated contact unless the client tells you otherwise in writing.

Can You Charge Extra Fees For Client Delays?

Yes, you can charge extra fees for client delays if your contract clearly gives you that right and the fees are fair, transparent and connected to the impact of the delay.

Extra fees are common where a client's delay causes you to spend more time, rebook staff, redo work or keep resources available longer than planned. The key is to explain this before the project begins, not after everyone is frustrated.

Your contract might allow you to charge for:

  • additional project management time spent chasing materials or reorganising timelines
  • extra meetings caused by missed approvals or changing instructions
  • rework caused by late or incorrect information
  • holding fees if you must reserve team capacity for a delayed project
  • restart fees if a paused project needs to be picked up again after a long gap
  • out-of-scope work triggered by the delay

For fixed-fee projects, this wording is especially helpful. A fixed fee usually assumes a certain scope, process and timeline. If the client delay changes those assumptions, you don't want your margin disappearing because your team is spending extra unpaid time managing the fallout.

You should also think about how the extra fees will be calculated. Options include:

  • your standard hourly or daily rates
  • a set administration or restart fee
  • a weekly holding fee
  • a written quote for additional work before you proceed

Be careful with fees that look like penalties rather than a genuine way to recover your costs or manage your resourcing. In New Zealand, penalty clauses can be challenged if they're out of proportion to the legitimate interest you're trying to protect. A tailored clause drafting approach is usually safer than copying a harsh template fee.

Can You Pause Work If The Client Stops Responding?

Yes, you can usually pause work if your contract gives you a clear suspension right and you follow the process in the contract.

A suspension clause is useful when the client goes quiet, withholds information, misses meetings or fails to pay invoices. It allows you to stop work instead of continuing to carry cost and risk while the project is stuck.

A good suspension clause usually says:

  • when you can suspend work, such as non-payment, missing information or no response for a set period
  • whether you need to give written notice first
  • what the client must do for work to resume
  • how the timeline changes after suspension
  • whether restart fees or additional fees apply
  • what happens if the project remains suspended for a long period

For example, your agreement might say that if the client hasn't provided required materials within 10 business days after a written reminder, you may suspend the project. The delivery dates will then be extended and you may charge reasonable restart costs before resuming.

Keep your communications calm and practical.

You might say something like: We are missing the product images and final copy needed for the next stage. Under our agreement, we'll pause work from Friday if we don't receive them by then. Once we receive them, we'll confirm the revised schedule.

This kind of message protects the relationship because it explains the consequence without making it personal.

How Do You Keep Your Promises Under The Fair Trading Act?

You keep your promises safe under the Fair Trading Act 1986 by making sure your deadlines, pricing and scope statements are accurate and not misleading.

The Fair Trading Act applies to New Zealand businesses in trade. If you advertise or promise delivery dates that you can't reasonably meet, or you hide major conditions in fine print, you could create legal and reputational risk for your business.

This doesn't mean you can never offer ambitious timelines. It means you should be clear about what those timelines depend on.

For example, instead of saying:

  • We'll launch your website in four weeks.

You might say:

  • We aim to launch within four weeks after receiving all required content, images, logins and written approvals from you.

That second version is much clearer. It tells the client what must happen before the timeline can be achieved.

If you deal with consumers or small clients who may be covered by consumer protections, also think about the Consumer Guarantees Act 1993. Services must generally be carried out with reasonable care and skill, and completed within a reasonable time if no time is agreed. Where both parties are in trade, you may be able to contract out of parts of the Consumer Guarantees Act if the legal requirements are met and it's fair and reasonable, but this should be handled carefully.

If your client provides personal information for the project, the Privacy Act 2020 may also be relevant. For example, if you're migrating customer data into a new platform, your contract and processes should cover who can access that data, how it will be used, how it will be secured, and what happens if there's a privacy breach. Notifiable privacy breaches must be reported to the Privacy Commissioner and affected people as soon as practicable.

Practical Clauses To Add Before Your Next Project

The most useful contract clauses are the ones that match how your projects actually run.

If your work depends heavily on the client, your service agreement, consulting contract, project management agreement or project proposal shouldn't just describe your deliverables. It should explain the process around those deliverables.

Clauses To Consider

Before your next project starts, check whether your agreement covers:

  • Scope: what is included, what is excluded and how changes are approved
  • Project plan: milestones, key dates and client input deadlines
  • Client dependencies: the information, access, approvals and feedback you need
  • Timeline extensions: what happens when the client misses a deadline
  • Additional fees: when extra fees apply and how they're calculated
  • Suspension rights: when you can pause work and what happens next
  • Change requests: how new requirements are quoted and approved
  • Payment terms: deposits, milestone payments, invoice due dates and consequences of late payment
  • Intellectual property: who owns existing materials, project deliverables and licence rights
  • Confidentiality and privacy: how sensitive information and personal information will be handled
  • Termination: when either side can end the agreement and what must be paid on exit

Templates often miss the commercial details that matter most to your business. A clause that works for a photographer may not work for a software developer. A clause that works for a two-day workshop may not work for a six-month transformation project.

A Simple Process That Helps

Your contract is only one part of the solution. Your project process should support it.

Try this approach:

  1. List everything you need from the client before you quote or start work.
  2. Put the key client deadlines in the proposal or project plan.
  3. Explain that your delivery dates depend on those deadlines being met.
  4. Send one clear reminder before each client deadline.
  5. If the client is late, confirm the impact in writing straight away.
  6. Use your contract process for extra fees, revised dates or suspension if needed.

This doesn't have to feel formal or unfriendly. Most good clients appreciate clarity. It helps them plan their own team and understand why their part of the project matters.

Key Takeaways

  • Client delays are easier to manage when your contract says your deadlines depend on the client providing information, approvals and access on time.
  • A client dependency clause should be specific, practical and linked to your project plan.
  • You can include rights to extend timelines, charge extra fees and pause work, but the wording should be fair and clear.
  • Your promises about delivery dates and pricing should be accurate under the Fair Trading Act 1986.
  • If personal information is involved, your contract and processes should also cover Privacy Act 2020 obligations.
  • A tailored service agreement can protect your time, your cash flow and your client relationships.

If you'd like help with your service agreement, client dependency clauses, project terms or privacy and confidentiality wording, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.

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Alex Solo
Alex SoloCo-Founder

Alex is a co-founder of Sprintlaw and an Australian-qualified lawyer (not admitted in New Zealand). Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.

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