Below is a practitioner-style primer that pulls together the whole Philippine playbook on contractor breach arising from delays in condominium renovation projects—from statutory foundations and standard contracts to remedies, procedure, and case law. It is organised so you can dip straight into the part you need, or read end-to-end for the full picture.

1. Why delays matter more in condominiums

Renovation inside a condo unit does not happen in a vacuum: it affects neighbouring units, common areas and the building’s structural integrity. For that reason the governing documents (Master Deed, Declaration of Restrictions and House Rules) usually impose shorter work windows, louder penalties and stricter approvals than a stand-alone house. When a contractor overruns, the unit-owner often faces daily association fines, security deposits forfeited, barred workers and even suspension of building services—so speed is genuinely money. (PropertyPro, communities.dmcihomes.com)

2. Core legal framework

Layer	Key provisions	Why relevant to renovation delay
Civil Code (Arts. 1159–1304, 1169, 1170, 1191, 1723-1724, 1715)	Contract has force of law; debtor in mora upon demand; liable for fraud, negligence or delay; right to rescind; contractor’s liability for defects; written consent required for extra work	Defines when delay = breach and the available remedies (Chan Robles Law Library, RESPICIO & CO.)
Republic Act 4726 (Condominium Act)	Unit improvements need compliance with Master Deed & by-laws; corporation may regulate alterations	Gives condo corporation leverage to stop works and claim damages (Lawphil)
P.D. 1096 (National Building Code) & IRR	Building/renovation permit before starting; Building Official may suspend or revoke permit for non-compliance	Delay often begins with a stop-work order if permits lapse (Department of Public Works and Highways, Respicio & Co.)
R.A. 4566 as amended by R.A. 11711 (Contractors’ License Law)	PCAB licence mandatory; unlicensed contractor cannot collect fees and may be fined ₱500k–₱1 M or jailed	Non-licensed contractor delays give owner immediate grounds to terminate and recover payments (Lawphil, DivinaLaw)
R.A. 7394 (Consumer Act) – Arts. 97–100	Service supplier strictly liable for defective or hazardous service	Alternative cause of action when delay couples with poor workmanship (ASEAN Consumer)
CIAP Document 102 (Uniform General Conditions for Private Construction)	Art. 21.05: 0.10 % of contract price per day of delay, capped at 10 %	Liquidated-damage template almost every condo fit-out adopts (FlipBuilder)
Executive Order 1008 & CIAC Rules	CIAC has original and exclusive jurisdiction over construction disputes with an arbitration clause (or even a generic “arbitrate” wording)	Fast-track forum (award in 45 d) favoured for renovation disputes (Lexology, Batas.org)
R.A. 9285 (ADR Act)	Court must refer parties to arbitration/mediation if contract so provides	Prevents tactical court suits to stall completion (no citation needed – black-letter law)

3. When is a contractor legally in delay (mora)?

Time obligation in the contract.
Valid demand from the owner/PMO unless:
- demand is waived, or
- the contract makes the date “of the essence,” or
- the nature of the obligation or law makes demand unnecessary (e.g., CIAP 102 treats scheduled milestones as automatic).
No accepted excusing cause (force-majeure, owner-caused delay, approved extension).

Failure in #3 puts the contractor in mora solvendi, exposing it to damages under Art. 1170. (RESPICIO & CO.)

4. Contractor playbook: typical excuses and their limits

Excuse pleaded	How courts/arbiters treat it
Owner’s late payments or design changes	Must prove critical-path impact and that written variation order extended time; see Titan-Ikeda v. Primetown, G.R. 158768 (2008) (Batas.org)
Force majeure (e.g., typhoons, pandemic)	Must be unforeseeable and overwhelming; CIAP 102 Art. 10.03 requires written notice within 15 d; time only, no cost unless expressly provided
Condo PMO restrictions (noise hours, elevator scheduling)	Usually foreseeable and part of contractor risk unless owner unreasonably changes house rules mid-project

5. Owner’s remedies when delay = breach

Liquidated damages – automatically deductible from progress billings or retention (CIAP 102; cap may be reduced if unconscionable under Art. 2227). (FlipBuilder, ICLG Business Reports)
Actual & consequential damages – must prove loss (e.g., association penalties, alternative lodging).
Rescission / termination (Art. 1191) – recover payments and hire replacement contractor.
Specific performance – compel completion, often with third-party site supervision.
Warranty claims – even after belated completion, hidden defects within 1-yr statutory warranty trigger Art. 1715 liability. (RESPICIO & CO.)
Administrative & criminal sanctions – file PCAB complaint (licence suspension) or prosecute under R.A. 4566 if unlicensed. (RESPICIO & CO.)
CIAC arbitration – file request; tribunal may grant interim relief (site access, payment freeze) within days; award enforceable as court judgment. (Lexology)
Regular courts – only if no arbitration clause; expect motion to dismiss/stay per R.A. 9285.

6. Procedure checklist for the unit-owner / project manager

Document the slippage: daily logs, photographs, punchlists.
Serve a formal demand (“Notice to Cure Delay”) with a clear date, citing contract and CIAP 102 clause.
Notify condo PMO and extend any work permits to avoid simultaneous regulatory breach.
Secure expert report (quantity surveyor/architect) quantifying percent complete and cost to finish.
Trigger dispute clause (negotiation → mediation → CIAC arbitration).
File CIAC case; pay filing fee (0.1 % of claim), ask for interim measures.
If threatening public safety, seek Building Official stop-work order under PD 1096 or PMO suspension. (Respicio & Co.)

7. What the contractor can still recover after termination

The Supreme Court in Megaworld v. DSM Construction, G.R. 153310 (2004) held that a contractor may still be paid for work actually accomplished—even when time overruns—if (i) delay is not solely its fault and (ii) value of work can be verified. (Batas.org) CIAC applies the same quantum meruit doctrine but will off-set liquidated damages first.

8. Drafting tips to avoid (or win) a delay dispute

Use CIAP 102 as baseline, but customise: shorter notice periods, higher or lower daily LDs, milestone-based liquidated damages for critical shutdowns (e.g., HVAC, plumbing rough-ins).
Require contractor to post a performance bond equal to 15-30 % of contract price and allow direct recourse for LDs.
Insert a “no extension for condo PMO restrictions” clause.
Stipulate fast-track arbitration (CIAC, three arbitrators, 45-day award) and interim relief.
Provide retention money (10 %) released only after punch-list completion and PMO clearance.
Include a key man clause naming licensed foreman/engineer; replacement needs owner approval to avoid quality-related delay.

9. Interaction with condo-corporation rules

Even a perfect construction contract cannot override the Master Deed & House Rules. Begin by filing the renovation application, architectural drawings and workmen IDs; failure to get PMO approval can itself be a breach and freeze the project timeline. (PropertyPro, DMCI Homes)

10. Recent jurisprudence snapshot

Case	Take-away
Titan-Ikeda v. Primetown, G.R. 158768 (2008)	No delay without valid demand; owner’s design changes absolved contractor. (Batas.org)
Megaworld v. DSM Construction, G.R. 153310 (2004)	CIAC findings of fact almost final; contractor can recover value of work less offsets. (Batas.org)
Grandspan v. AEC, G.R. 251463 (2 Aug 2023)	Arbitration clause = CIAC jurisdiction even if parties name another forum. (Batas.org)
Chua v. De Castro, G.R. 235894 (5 Feb 2024)	No CIAC jurisdiction without arbitration agreement; dispute stayed for mediation. (DivinaLaw)

11. Practical bottom line

Delays in condo renovations cascade quickly—rent loss, association penalties, and neighbour complaints. Philippine law gives unit-owners a layered arsenal (liquidated damages, rescission, CIAC fast-track arbitration, PCAB sanctions) but success hinges on timely written demands, clear documentation, and a contract that anticipates condo-specific risks. For contractors, the message is equally clear: keep permits current, document owner-caused changes, and never take a fit-out without a valid PCAB licence.

Disclaimer – This article is for information only and does not constitute legal advice. Facts vary; consult counsel before acting.