Can a “No Damage for Delay” Clause Prevent You From Getting Paid?
A No Damage for Delay (NDFD) clause is designed to protect the owner and have the contractors and subcontractors assume the financial risk. A few states do not allow contracts to include an NDFD clause. However, NDFD clauses are enforceable in the state of Alabama with few exceptions. If the job is delayed, in most cases, the clause prevents you from getting paid. To minimize the risks of the NDFD clause, negotiate an effective contract with the help of a Birmingham construction lawyer.
I Agreed to the NDFD Clause, What Next?
There are a few things you can do to overcome the NDFD clause in your construction contract. If the owner was negligent and their negligence was the cause for the delay, you may be able to recover time and money. Documentation of the delay is critical for compensation and for proof that you were not the cause of the delay.
Don’t Forget Your Written Notice
A written notice must accompany any claim for additional costs, time extensions, or delay damages. The notice must be given within a specified period of time after the event causing the delay. Failing to provide the written notice will deny any recovery of delay damages. The written notice requirement may be waived by the parties throughout the course of the performance of the contract.
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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.