A subcontractor (Solis) sued a general contractor (Green International) for unpaid work and delays on Texas prison projects. The general contractor had a no-damages-for-delay clause in the contract. The Texas Supreme Court ruled that no-damages-for-delay clauses are enforceable and do not need to be written in extra-large or bold text to be valid. This means subcontractors cannot easily recover money for project delays if the contract contains this clause, even if the general contractor caused the delays.
No-damages-for-delay clauses in Texas construction contracts are enforceable even if they are not highlighted or made conspicuous in the contract language.
Before signing a subcontract, carefully review whether it contains a no-damages-for-delay clause and understand that you may not be able to recover delay costs if the GC causes the delay.
If a contract has a no-damages-for-delay clause, focus on documenting all change orders and extra work in writing to protect your right to payment for those items, since delay damages will likely be barred.