TX STATETexas Supreme Court
2014

Zachry Construction Corporation v. Port of Houston Authority of Harris County, Texas

449 S.W.3d 98Texas Supreme Court • Decided 2014Remanded

HOLDING

Zachry Construction sued the Port of Houston for delays on a wharf project. The Port had a no-damages-for-delay clause in the contract, but the Texas Supreme Court ruled that such clauses cannot protect an owner who deliberately and wrongfully interferes with the contractor's work. This means even broad delay waiver language won't shield owners from liability when they actively sabotage or wrongfully obstruct your work.

KEY FINDINGS

Pay-When-Paid

No-damages-for-delay clauses have limits: they protect owners from negligent delays but not from deliberate, wrongful interference with your work

Liquidated Damages

Document owner interference carefully: if the owner actively blocks your work or deliberately causes delays, you may have a claim even with a delay waiver in your contract

Force Majeure

General payment waivers don't automatically release specific claims you've already asserted—make sure any settlement language specifically addresses the claim you're releasing

FULL COURT OPINION