“No damage for delay” clauses continue to divide the country and the courts on their application and interpretation. Although owners and prime contractors insist on enforceability, the net result typically shifts the risk onto the party least likely to negotiate fair limits, to control events on the jobsite and absorb the ultimate cost. Nevertheless, these clauses are found in most construction contracts in some form or another.
Corporate owners and tenants who build in urban centers such as New York City are an “at risk” group. Getting everything “on line” quickly is expensive. Difficulties encountered during a failure in design or construction can be catastrophic if practical solutions are not developed promptly to get things back on track.
In previous editions of the MDCAdvisor®, our contributors have addressed risk issues relative to budgeting and cost estimating as well as overall risk considerations. A key contributor to almost all of the potential project risk scenarios is the conception, development and execution of the design process for the project.