{"id":904304,"date":"2025-05-01T14:57:10","date_gmt":"2025-05-01T20:57:10","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904304"},"modified":"2025-05-01T14:57:13","modified_gmt":"2025-05-01T20:57:13","slug":"no-damages-for-delay-top-10-killer-construction-contract-clauses-part-1","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/no-damages-for-delay-top-10-killer-construction-contract-clauses-part-1\/","title":{"rendered":"Top 10 Killer Construction Contract Clauses, Part 1: No Damages for Delay"},"content":{"rendered":"\n<p>Jessica duHoffman and Jonathan Neri | <a href=\"https:\/\/www.pilieromazza.com\/top-10-killer-construction-contract-clauses-part-1-no-damages-for-delay\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">PilieroMazza<\/a><\/p>\n\n\n\n<p>Those familiar with the construction industry know that construction projects are seldom, if ever, completed within the time originally anticipated at the project\u2019s outset. Fortunately, prime contractors and lower-tier subcontractors are often permitted to seek additional costs stemming from owner-caused delays\u2014commonly referred to as\u00a0<em>compensable delays<\/em>. However, the presence of a\u00a0<strong><a href=\"https:\/\/www.myconstructionexpert.com\/blog\/no-damages-for-delay-construction-contract-basics\/\">no damages for delay<\/a><\/strong>\u00a0clause in a contract can significantly impede a contractor\u2019s and subcontractor\u2019s ability to pursue claims for compensable delay.\u00a0<strong><em>Because delays increase construction costs, construction contractors and subcontractors should understand these provisions, and any limitations on their enforceability to better manage risk on both public and private construction projects.<\/em><\/strong><\/p>\n\n\n\n<p><strong>What Is a No Damages for Delay Clause?<\/strong><\/p>\n\n\n\n<p>A no damages for delay clause is a contractual provision often contained in construction contracts that is meant to shift the risk of loss caused by project delay from the owner to the prime contractor and\/or from the contractor to its subcontractors by prohibiting or waiving monetary compensation for project delays, even when those delays were not caused by the contractor or subcontractor. Instead, affected parties are generally limited to schedule extensions as their sole remedy. Contractors facing extended timelines without corresponding compensation may suffer serious financial setbacks. Common examples of unrecoverable damages under these clauses include:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>increased labor, material, or equipment costs;<\/li>\n\n\n\n<li>additional project management or administrative costs;<\/li>\n\n\n\n<li>loss of productivity and acceleration costs; and<\/li>\n\n\n\n<li>extended general conditions.<\/li>\n<\/ol>\n\n\n\n<p><strong>Exceptions to Enforceability<\/strong><\/p>\n\n\n\n<p>While states generally permit and enforce no damages for delay clauses, there may be exceptions to the enforceability of these clauses. Examples of potential exceptions recognized in several states include:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>delays caused by fraud, misrepresentation, concealment, or other bad faith;<\/li>\n\n\n\n<li>delays so unreasonable in length as to amount to project abandonment;<\/li>\n\n\n\n<li>delays not contemplated by the parties at the time of contracting; and<\/li>\n\n\n\n<li>delays caused by the other party\u2019s active interference.<\/li>\n<\/ol>\n\n\n\n<p>It is important that contracting parties be aware of exceptions that may govern under the contract\u2019s applicable state law.<\/p>\n\n\n\n<p><strong>Enforceability in the Case of Public Contracts (or Government Contracts)<\/strong><\/p>\n\n\n\n<p>A few states have also enacted statutes that limit or prohibit the enforceability of no damages for delay clauses in public contracts (or government contracts). As applicable to prime contractors, some states consider any clause that would absolve the state government of any monetary liability for government-caused delays to be unenforceable as against public policy. Similarly, a few states will not enforce no damages for delay clauses in subcontracts to the extent they infringe on payment bond rights under applicable Little Miller Acts.<\/p>\n\n\n\n<p>In the case of federal procurement contracts, the Federal Acquisition Regulations (FAR) explicitly entitles prime contractors to an equitable adjustment of the contract price where their work was interrupted by the acts or omissions of the government. While select FAR clauses contained in federal procurement contracts may flow down through a subcontract, subcontracts under federal projects are largely governed by state law, so understanding applicable state law is essential. Moreover, federal courts are divided on whether no damages for delay clauses are enforceable under the Federal Miller Act.<\/p>\n\n\n\n<p><strong>Takeaway<\/strong><\/p>\n\n\n\n<p>No damages for delay clauses can significantly impact a contractor\u2019s ability to recover costs associated with project delays. These clauses should be carefully considered in conjunction with any applicable limitations to enforceability under state or federal law.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jessica duHoffman and Jonathan Neri | PilieroMazza Those familiar with the construction industry know that construction projects are seldom, if ever, completed within the time originally anticipated at the project\u2019s outset. Fortunately, prime contractors and lower-tier subcontractors are often permitted to seek additional costs stemming from owner-caused delays\u2014commonly referred to as\u00a0compensable delays. However, the presence&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/no-damages-for-delay-top-10-killer-construction-contract-clauses-part-1\/\">Continue reading <span class=\"screen-reader-text\">Top 10 Killer Construction Contract Clauses, Part 1: No Damages for Delay<\/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":[9895,224,8998],"class_list":["post-904304","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-no-damages-for-delays","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>Top 10 Killer Construction Contract Clauses, Part 1: No Damages for Delay - Advise &amp; 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