A wastewater treatment facility project in Mississippi involved disputes between the county, general contractor Max Foote, and subcontractor PYCA Industries over payment and delays. The court upheld the no-damages-for-delay clause in the contract, meaning contractors cannot recover money for project delays unless the delay was unexpected, caused by the owner's bad faith actions, or amounts to abandonment of the contract. This ruling protects owners and general contractors from delay claims but limits subcontractors' ability to recover costs from ordinary or foreseeable delays.
No-damages-for-delay clauses are legally enforceable—you cannot claim delay damages for ordinary or foreseeable delays even if the project takes longer than planned
You can only recover delay damages if the delay was uncontemplated, caused by the owner's bad faith or active interference, or constitutes contract abandonment—document everything to prove these exceptions
Make sure delay and change order procedures are clearly defined in your subcontract before signing, and flow down all no-damages-for-delay language from your prime contract to protect yourself