'No Damage for Delay' Clauses in Construction Contracts

"No damages for delay" clauses are often used in construction contracts to restrict the contractor to only an extension of time for project delays and to prohibit claims for damages arising from delays in the completion of the project. Challenges to enforcement of this provision are common. Some states deal with this issue by common law, some by statute and others have not addressed the issue — West Virginia being one of those states. The following will discuss no-damages-for-delay clauses in Pennsylvania, Ohio and Virginia.

Pennsylvania

The general rule in Pennsylvania is that a no-damages-for-delay clause in a construction contract will be enforced, unless the party seeking to invoke the clause interfered in a positive or affirmative manner with the contractor's work or where there is a failure on the part of the party seeking to enforce the clause to act in some essential manner necessary to the prosecution of the work. The courts have granted exceptions to this rule where there has been "active interference" by the party seeking to invoke the clause.