{"id":889917,"date":"2016-06-28T10:02:03","date_gmt":"2016-06-28T16:02:03","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=889917"},"modified":"2016-06-28T10:02:03","modified_gmt":"2016-06-28T16:02:03","slug":"how-to-circumvent-no-damage-for-delay-clauses","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/how-to-circumvent-no-damage-for-delay-clauses\/","title":{"rendered":"How to Circumvent \u201cNo Damage for Delay\u201d Clauses"},"content":{"rendered":"<p>J.P. Vogel | <a href=\"http:\/\/www.texasconstructionlawblog.com\/2016\/06\/how-to-circumvent-no-damages-for-delay-clauses\/\" target=\"_blank\">Texas Construction Law Blog<\/a> | June 21, 2016<\/p>\n<p>Most commercial construction contracts contain a <em><strong>\u201cNo Damage For Delay\u201d<\/strong><\/em> Clause and most contractors mistakenly believe they are Kings X for any potential claims related to delay caused by an owner or original contractor. While nearly every commercial construction contract contains the same or similar provisions, it is important to keep in mind they all have different authors, which means typically\u00a0no two clauses are ever drafted the same.<\/p>\n<p>This is particularly important when it comes to <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/limitations-of-liability-scenario-two-no-damages-for-delays-clauses\/\" target=\"_blank\"><em><strong>\u201cNo Damage For Delay\u201d<\/strong><\/em> Clauses<\/a> as the actual\u00a0breadth of the language and scope will set the tone for\u00a0their enforcement\u00a0or circumvention. There are several common law exceptions to<em><strong>\u00a0\u201cNo Damage for Delay\u201d<\/strong><\/em> clauses recognized in Texas, which\u00a0may be\u00a0neutralized or ignored by the particular language\u00a0of a <em><strong>\u201cNo Damage\u00a0for Delay\u201d<\/strong><\/em> Clause.<\/p>\n<p>Per the recent\u00a0case <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/zachry-v-port-houston-authority-texas-supreme-court-rules-contractor-despite-damages-delay-clause-dla-piper-jdsupra\/\" target=\"_blank\"><em>Zachry Constr. Corp. v. Port of Houston Authority of Harris County<\/em><\/a>, 449 S.W.3d 98 (Tex. 2014) the Texas Supreme Court recognizes the following <strong>5\u00a0common\u00a0law\u00a0exceptions<\/strong>:<\/p>\n<p><strong>(1) the damage producing delay was not intended or contemplated by the parties to be within the purview of the provision;<\/strong><\/p>\n<p><strong>(2) the damage producing delay resulted from fraud, misrepresentation, or other bad faith on the part of one seeking the benefit of the provision;<\/strong><\/p>\n<p><strong>(3) the damage producing delay has extended for such an unreasonable length of time that the party delayed would have been justified in abandoning the contract;<\/strong><\/p>\n<p><strong>(4) is not within the specifically enumerated delays to which the clause applies; and<\/strong><\/p>\n<p><strong>(5) the damage producing delay was based upon active interference, or other wrongful conduct including arbitrary and capricious acts, willful and unreasoning actions, without due consideration, and in disregard of the rights of other parties.<em> Id<\/em>, citing <em>Green International, Inc. v. Solis<\/em>, 951 S.W.2d 384, 387-388 (Tex. 1997).<\/strong><\/p>\n<p>The most critical issue regarding these exceptions as discussed in <em>Zachry<\/em> is whether or not the <em><strong>\u201cNo-Damage For Delay\u201d<\/strong><\/em> Clause is drafted either so specifically or globally for the express purpose of circumventing the common law exceptions. If a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/texas-supreme-court-recognizes-exceptions-enforcement-damages-delay-clauses\/\" target=\"_blank\"><em><strong>\u201cNo Damage for Delay Clause\u201d<\/strong><\/em><\/a> specifically addresses the 5 common law exceptions, there is likely no way around its harsh effect. However, if a particular clause fails to address all or some of the 5 common law exceptions there is room for maneuverability to defeat its strict enforcement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>J.P. Vogel | Texas Construction Law Blog | June 21, 2016 Most commercial construction contracts contain a \u201cNo Damage For Delay\u201d Clause and most contractors mistakenly believe they are Kings X for any potential claims related to delay caused by an owner or original contractor. While nearly every commercial construction contract contains the same or&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/how-to-circumvent-no-damage-for-delay-clauses\/\">Continue reading <span class=\"screen-reader-text\">How to Circumvent \u201cNo Damage for Delay\u201d Clauses<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[224,777],"class_list":["post-889917","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-construction-contract","tag-no-damage-for-delay","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Circumvent \u201cNo Damage for Delay\u201d Clauses - Advise &amp; 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