Jose A. Aquino | Duane Morris The First Department’s recent decision in Henick–Lane, LLC v. Stellar Management Group, Inc. reaffirms New York’s strong policy of enforcing no-damages-for-delay clauses. Henick–Lane sought compensation for eight change orders tied to delays, but the subcontract’s no-damages-for-delay clause limited remedies to extensions of time. The court held that the claims were barred,… Continue reading Appellate Court Reinforces Delay Clause in Construction Subcontract
Tag: No-Damage-for-Delay Clause
Appellate Court Reaffirms Limits On Delay Damages In Construction Contracts
Jose A. Aquino | Duane Morris On June 5, 2025, the Appellate Division, First Department of the New York Supreme Court issued an opinion in Gamma USA, Inc. v. Pavarini McGovern, LLC, addressing the enforceability of a no-damages-for-delay clause in a construction contract between the subcontractor and contractor. The subcontractor had brought breach of contract claims… Continue reading Appellate Court Reaffirms Limits On Delay Damages In Construction Contracts
Appellate Court Reaffirms Limits on Delay Damages in Construction Contracts
Jose A. Aquino | Duane Morris On June 5, 2025, the Appellate Division, First Department of the New York Supreme Court issued an opinion in Gamma USA, Inc. v. Pavarini McGovern, LLC, addressing the enforceability of a no-damages-for-delay clause in a construction contract between the subcontractor and contractor. The subcontractor had brought breach of contract claims… Continue reading Appellate Court Reaffirms Limits on Delay Damages in Construction Contracts
No-Damages-for-Delay Clauses and the COVID-19 Crisis
Scott Paton | Hodgson Russ Although “construction” was originally deemed by Governor Cuomo to be “essential”, and thus exempt from the restrictions imposed by his March 18, 2020 Executive Order, that has since changed. Through subsequent Executive Orders, as interpreted by various State agencies, the reach of COVID-19 has extended deeply into the construction industry… Continue reading No-Damages-for-Delay Clauses and the COVID-19 Crisis
Does a No-Damage-for-Delay Clause Also Preclude Acceleration Damages?
Ted R. Gropman and Christine Z. Fan | ConsensusDocs Construction contracts often include a “no damage for delay” clause that denies a contractor the right to recover delay-related costs and limits the contractor’s remedy to an extension of time for noncontractor-caused delays to a project’s completion date. Depending on the nature of the delay and… Continue reading Does a No-Damage-for-Delay Clause Also Preclude Acceleration Damages?