Pyca Industries, Inc., Pyca Industries, Inc. v. Harrison County Waste Water Management District, Max Foote Construction Company, Inc., Defendant-Cross Claimant-Appellee-Appellant v. Owen and White, Inc., Defendant-Cross Defendant-Cross Claimant-Appellee v. Harrison County Waste Water Management District, Defendant-Cross Defendant-Appellee-Appellant
177 F.3d 351 | Court of Appeals for the Fifth Circuit | 1999
What This Case Means for Subcontractors
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.
Key Takeaways
- •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
No extension of time will be given for ordinary or foreseeable delays.
Frequently Asked Question
Can I get paid for delays on my construction project if the contract has a no-damages-for-delay clause?
Generally no—the court ruled that no-damages-for-delay clauses are enforceable and bar you from recovering delay costs for ordinary or foreseeable delays. However, you may recover if the delay was truly unexpected, the owner acted in bad faith or actively interfered with your work, or the owner abandoned the contract. Always document delays carefully and review your contract's change order procedures before work begins.
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