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Delay And Damage Provisions In A Construction Contract

As construction lawyers in Orlando, we know that every construction contract holds multiple provisions. A provision is defined as a legal clause that has been drafted to protect the interests of one or all of the parties that are involved in a specific contract. In this article we will be discussing delay and damage provisions. We know that it’s vital for contractors and others in the construction industry to understand the provisions that are included in the contracts. This is why it’s highly recommended to seek the help of a local construction lawyer when drafting delay and damage provisions into a contract.

What is a Delay and Damage Provision?

In the construction industry, typically, all construction projects rely on a set schedule for finishing the contracted project. Construction projects can be complex, and because of this, it’s almost guaranteed that somewhere along the line the project will veer from the tracks. When the inevitable delays occur (not including delays that are caused by natural events, i.e., weather) in a project, one of the parties will suffer damages (the owner) and the other party (the contractor) will be held responsible. To help control any liabilities that are linked to the delays, contractors will usually include a delay and damage provision in their contracts.

Commonly Used Damage Provisions

As construction attorneys in Orlando, we know that there are three commonly used delay and damage provisions in a construction contract. They are:

  • Liquidated Damages
  • No Damages for Delays
  • Mutual Waiver of Consequential Damages

These three commonly used delay and damage provisions can provide contractors with restrictions on the amount of recovery that an injured party (the owner) is entitled to receive. In some cases, these provisions can abolish any liability from the injured party completely.

To schedule a consultation with one of our experienced construction lawyers in Orlando, please call us today at 407.378.6575 or submit our contact request form.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

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