No-Damages-for-Delay Clauses in Construction
A no-damages-for-delay clause says your only remedy for delay is more time — not money — even when the other side caused the delay.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not legal advice.
Overview
A no-damages-for-delay clause limits a contractor’s remedy for delay to a time extension, barring recovery of the added cost (extended overhead, idle crews, escalation) that delay causes.
These clauses shift delay-cost risk onto the performing party. Courts in many states enforce them but recognize exceptions; both enforcement and exceptions are state-specific.
Topics to check
The clause typically says the contractor’s sole remedy for any delay — even owner-caused delay — is an extension of time, with no additional compensation. On a delayed job, extended general conditions and escalation can be substantial uncompensated costs.
Read it together with the schedule, the change-order clause, and any liquidated-damages clause to understand your full time-and-money risk.
Many states recognize exceptions even where the clause is otherwise enforceable — for example, delays caused by the owner’s bad faith or active interference, fraud, gross negligence, or delays not contemplated by the parties, or abandonment of the contract. The scope of these exceptions varies by state.
Do not rely on an exception applying. Treat the clause as enforceable as written unless a construction attorney advises otherwise for your state.
Seek carve-outs that allow compensation for owner-caused delay, suspension, differing site conditions, and delays beyond a stated number of days. At minimum, ensure you reliably get time extensions so delay does not also trigger liquidated damages against you.
Document delays and follow notice requirements; a strong record is what makes any exception or extension claim viable.
Key takeaways
- A no-damages-for-delay clause limits your delay remedy to time, not money.
- It shifts extended-overhead and escalation costs onto the performing party.
- Many states recognize exceptions (active interference, bad faith) — but scope varies.
- Negotiate carve-outs for owner-caused delay and reliable time extensions.
- Document delays and follow notice requirements to preserve claims.
Official resources
Legal-review notes
Guide confidence marker: Needs lawyer verification.
- No-damages-for-delay enforceability and the recognized exceptions are state-specific and fact-dependent.
- Confirm delay-cost recovery with a construction attorney in the project’s state.
- This guide is general information from the BizLeaseCheck Editorial Team, not legal advice.
Frequently asked questions
Is a no-damages-for-delay clause enforceable?
In many states yes, but courts often recognize exceptions such as active interference, bad faith, or delays not contemplated by the parties. Both enforcement and exceptions are state-specific.
What should I negotiate if the contract has this clause?
Carve-outs allowing compensation for owner-caused delay, suspension, and differing site conditions, plus a guarantee of time extensions so delay does not also trigger liquidated damages against you.
Is this legal advice?
No. This is general information for issue-spotting. Construction-contract enforceability — pay-if-paid, no-damages-for-delay, indemnity, lien and lien-waiver rules, retainage limits, and prompt-payment rights — varies by state and by whether the project is public or private, so confirm high-stakes points with a construction attorney licensed in the project’s state.