No-Damages-For-Delay Clause Enforced Even When Owner and Other Contractors Caused Delay
ConstructionRisk.com Report Vol. #14, Issue #6
See article in the following topic indices:
Damages,Delays,No-Damages-For-Delay,Schedule
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A no-damages-for-delay clause was held to prevent a contractor from recovering damages for delays even where there was evidence that poor planning and administration by the project owner contributed to delay and there was evidence that work by other contractors adversely impacted the schedule. This case involved a suit by a contractor against the Dormitory [...]
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Liquidated Damages in Design-Build subcontract Are Enforceable Even Where Far Exceeding Actual Damages
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Breach of Contract,Damages,Delay Claims,Delays,Design-Build,Federal Government Contracts,Liquidated damages
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Where a contractor entered into a design-build contract with the U.S. Navy to build four buildings at the Pensacola Naval Air Station, and included a liquidated damages (LD) provision in the subcontract with its subcontractor, that LD provision was enforceable despite evidence that the actual damages incurred by the contractor as a result of alleged [...]
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“No Damages for Delay” Clause Enforced Against Contractor Claim
ConstructionRisk.com Report Vol. #13, Issue #5
See article in the following topic indices:
Contract - Onerous Language,Contract-Bargain Enforced,Damages,Delays,No-Damage-for-Delay,Public Policy Arguments
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Where a contractor signed a contract with a municipality that included a clear and unambiguous “no damages for delay” clause, it was held that such a clause did not violate public policy, and that as a result of the clause the contractor was not entitled to recover its delay damages despite the fact that the [...]
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Contractor May be Sued for Lost Profits arising out of Breach of Contract
Consequential Damages,Damages
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When an oral surgeon hired a contractor to construct his office and was unable to use part of the finished office due problems with the floors, he sued the contractor for damages, including loss of profits. The court held that the possibility that there would be lost profits if the facility were not open and [...]
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Punitive Damage Award Against Insurance Company Reversed by Supreme Court as Excessive
Bad Faith,Damages,Fraud,Insurance Issues,Punitive Damages,Settlement Agreement
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When State Farm Insurance refused a proposed settlement for the amount of its policy limit for a law suit arising out of an automobile accident, the matter went to trial and a jury returned a verdict against State Farm’s insured in the amount of three times the policy limit. State Farm paid the entire judgment [...]
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Mold-Related Construction Defect Claims: Who is Liable for Alleged Damage Caused by Exterior Insulation Finishing Systems (“EIFS”)
Damages,EIFS,Mold,Settlement Agreement
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By: Gordon & Rees, LLP EIFS or synthetic stucco is at the forefront of construction defect allegations regarding water intrusion, property damage and mold growth. EIFS generally consists of a layer of exterior grade gypsum glued to a foam board. The foam board is then coated with a heavy base coat of the synthetic stucco. [...]
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No Damage for Delay" Clause Not Enforceable
Construction Management,Damages,Delay,No-Damage-for-Delay,Notice Requirements
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Where an electrical contractor was delayed in completing its work, the project owner, school district, asserted that the contractor’s claim for delay damages was barred by a “no damages for delay” clause in the contract. The trail court concluded that the clause did not bar the plaintiff’s claim, and the appellate court agreed. Delays were [...]
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Architect Wins Entitlement to Damages, but Recovers Nothing, Because it Failed to Keep Adequate Cost Records
Additional Services,Damages,Delay,Documentation,Scope of Services
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An architect performed both design and construction administration services under its contract with a school district. When the construction contractor completed the project eight months late, the architect alleged that it was entitled to recover compensation for the additional services it was forced to perform as a result of the contractor’s delay. The school district [...]
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Engineer Not Liable for Breach of Implied Warranty of Design
Betterment,Damages,Differing Site Conditions,Implied Warranty of Specifications,Negligence,Warranties
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When an engineer designed a road that failed because the impermeability of the underlying soil caused water to accumulate between the soil and the asphalt, resulting in the road floating and the asphalt cracking, the project owner sued for negligence and breach of implied warranty. Because the soil condition was an unanticipated, differing site condition, [...]
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No Damage for Delay Clause Not Enforced
Damages,Delays,Foreseeable,Fraud,Indemnification,Interference with Contract,No-Damage-for-Delay,tortious interference
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A construction contractor was delayed in completing a road construction project by a flaw in the design provided by the project engineer. The project owner (Broward County, Florida) denied the contractor’s delay and impact claim, asserting that it was barred by a contract provision entitled “No Damages for Delay.” The courts held that to the [...]
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