Mahoning County hired Terreri Construction and Avila Supply for two renovation contracts on the Higbee building. The county delayed issuing the notice to proceed, and the contractors demanded payment for the delay. The court ruled that 'no damages for delay' clauses in the contracts protected the county from liability, and the contractors' demand letters amounted to breaking the contract themselves. The judgment against the contractors was reversed.
A 'no damages for delay' clause can shield the owner from paying contractors for project delays, even if the owner causes them. Read your contract carefully before signing.
Sending a demand letter threatening to walk off the job can be seen as you breaking the contract first, which eliminates your right to sue. Consult a lawyer before making threats.
Performance bonds and bid guarantees don't protect you if the contract has strong 'no damages for delay' language. Negotiate these clauses before bidding.