J.A. Jones, a concrete subcontractor, sued the construction manager for delays on a Las Vegas casino project. The subcontractor had negotiated a lower bid ($7.4M instead of $8.4M) based on the contractor's promise to handle site prep and reduce the work schedule. The Nevada Supreme Court ruled that 'no damages for delay' clauses cannot shield contractors from liability when they act in bad faith, commit fraud, actively interfere with the work, or abandon the project. The case was sent back for a new trial because the lower court wrongly prevented the jury from considering these exceptions.
Don't accept 'no damages for delay' clauses without understanding they have limits—bad faith, fraud, active interference, and project abandonment can override them
Document everything the contractor promises to do (site prep, schedule reductions, cost savings) because breaking those promises may constitute bad faith or active interference
If a contractor causes delays while also failing to perform its own obligations, you may have claims beyond the contract itself, including quantum meruit (payment for work performed)