Reviewed September 7, 2026.
A no-damages-for-delay clause can leave a contractor with additional time as its principal remedy for covered delays while limiting compensation for the resulting expense. Read the precise language; the clause may protect one party, and it may interact with separate waivers of consequential damages or liquidated-damages provisions.
New York generally enforces these clauses, subject to the recognized exceptions discussed in Corinno Civetta Construction Corp. v. City of New York, 67 NY2d 297 (1986). Those include qualifying serious misconduct, uncontemplated delay, intentional abandonment through unreasonable delay and breach of a fundamental express obligation.
Allocate risks that fit the project
Consider access, design readiness, utility relocations, other trades, owner-directed suspensions and changes. Negotiate clear time-extension rights, compensation for specified events, workable notices and a fair allocation of risks the parties can control. A mutual waiver is a negotiating choice, not a universal solution; owners and contractors can each face substantial but different losses.
Do not assume that inconvenience, lost profit or a longer schedule automatically proves a recoverable claim. Preserve notices and evidence of causation and cost even when an exception may apply.
Kushnick Pallaci PLLC assists clients throughout New York with construction contract drafting and review. Contact 631-752-7100 or vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
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