A no-damages-for-delay clause can bar contractor claims for additional costs a contractor incurs due to delay on a project. Such clauses can be controversial, and at least one state—Virginia—has enacted a statute limiting the use of no-damages-for-delay clauses on public construction projects.
Regardless, many courts will enforce a no-damages-for-delay clause. But there can be exceptions to the enforcement of such clauses.
One of the most common exceptions is where the party seeking to enforce a no-damages-for-delay clause actively interferes with the other party’s completion of its work. A Florida federal court recently considered the active-interference exception in a dispute between a general contractor and a subcontractor.