LEGAL AFFAIRS SECTION
Sep 15, 2003
No-Damages-for-Delay Clause: Evaluating Contract Delay Risk
Authors: H. Randolph Thomas and John I. MessnerAuthor Affiliations
Publication: Journal of Professional Issues in Engineering Education and Practice
Volume 129, Issue 4
Abstract
In recent years, there have been a number of construction disputes involving no-damages-for-delay clauses in construction contracts. This paper reviews the legal aspects of the no-damages-for-delay clause and presents in an easy-to-use flowchart the issues that need to be addressed to resolve disputes involving the no-damages-for-delay clause. Analysis shows that the clause presents a formidable obstacle for contractors to overcome if monetary damages are to be recovered. The contractor in most instances needs to show that the owner or the owner’s agent caused active hindrance or the owner demonstrated bad faith toward the contractor. The language of the clause is critical to determining the risk it conveys to the contractor. Examples of minimal, intermediate, and maximum risk language are given.
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References
American Institute of Architects (AIA). (1987). General conditions of the contract for construction, AIA A201, Washington, D.C.
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Copyright
Copyright © 2003 American Society of Civil Engineers.
History
Received: Jan 29, 2003
Accepted: Jul 2, 2003
Published online: Sep 15, 2003
Published in print: Oct 2003
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Affiliations
H. Randolph Thomas
Professor of Civil Engineering, Pennsylvania Transportation Institute, The Pennsylvania State Univ., University Park, PA 16802.
John I. Messner
Assistant Professor of Architectural Engineering, The Pennsylvania State Univ., 104 Engineering Unit A, University Park, PA 16802.
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Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.