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What is a “no damage for delay” clause?

Customarily, this type of contractual provision stipulates that while the contractor or subcontractor is not entitled to a claim for delay damages, it will be entitled to an extension of time. Many times the contract will state the contractor is entitled to no damage for the delay, but, on the other hand, the owner or contractor is entitled to “liquidated damages” for any delay caused by the contractor or subcontractor. One of the risk allocators in the construction industry is the no damage for delay clause. In bidding the project, the contractor must carefully examine the contract documents to determine whether or not there is, in fact, a no damage for delay clause contained within the terms of the contract. If there is, the contractor must bid the contract with knowledge that such a clause exists and it will have the burden of proof to get around the no damage for delay clause.

Construction Contracts 

This information applies to All Counties in North Carolina.


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