No Damages
In the Open Standard
Amy MascrenhasMember for 18 years
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Hi
Is a "No Damages for delays" clause that covers all scenarios valid under all circumstances? What if the delays were totally unforeseen? Is there any loophole?
From a Contrcator’s view, if he sustains heavy losses and is granted time, but cannot claim costs, it is totally favorable to Owner. In this case, can he say the clause is operating as a penalty and hence cannot be valid.
Penalty, in the sense, he is being penalised for something beyond reason.
Any suggestions?
Thanks
Is a "No Damages for delays" clause that covers all scenarios valid under all circumstances? What if the delays were totally unforeseen? Is there any loophole?
From a Contrcator’s view, if he sustains heavy losses and is granted time, but cannot claim costs, it is totally favorable to Owner. In this case, can he say the clause is operating as a penalty and hence cannot be valid.
Penalty, in the sense, he is being penalised for something beyond reason.
Any suggestions?
Thanks
3 replies
Oldest first- 0Samer Zawaydeh ·Dear Amy,
It depends on the Contract. You will have to read it carefully and determine the extent of each clause. Once you have studied all the contractual possibilities, then you can start thinking about the Legal system.
If the damages are large, and the Contractor is undergoing heavy losses, you can have a case. But this would be cleared under the legal system. That would take many years, and will cost a lot.
Try to search the known cases in your Country by asking the Construction Professionals, and Arbitrators.
Good luck,
Samer
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