Construction contracts often times contain no damage for delay clause. These clauses provide that the owner or general contractor will not be responsible for any damage caused to a subcontractor for delay to the project. Nebraska courts have enforced these clauses and efforts to get around these clauses are often times very difficult.
Since at least 1974, the Nebraska Supreme Court has found that damage for delay clauses are enforceable. The Court recognized that a delay caused by an owner or another party, may allow the harmed subcontractor to recover damages. But, a no damage for delay clause can work as an effective bar to that claim for damages, leaving the harmed subcontractor with no remedy.
Before you sign a contract that contains no damage for delay clause, make sure you understand the scope of the clause. It may only bar claims for delays which are caused by the owner or contractor, and not other subcontractors. It may also contain a carve-out for abnormal events, such weather conditions or changed site conditions.
As with all contracts, make sure that you completely understand the provisions and any impact of those provisions before you sign them.
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