Contractor’s Toolbox – The “no damages for delay” clause: Handle with care
Abstract: Because delays can be costly, contractors often seek damages for delays caused by the owner or, in the case of a subcontractor, by the general contractor. But a “no damages for delay” clause can help mitigate the financial ramifications of such delays. Essentially, it denies a contractor’s right to recover monetary damages for some or all delays, limiting its remedies to an extension of time to complete the work. This article explains what the clause can and cannot do and lists some exceptions to the clause.