5.3.1.4.6.2.2 Arizona Statutory Limitations on No Damage for Delay Clauses in Public Contracts.

• Jurisdiction: Arizona

Arizona has a specific statutory requirement, found in both title 34, § 221(F) and title 41, § 2617 of the Arizona Revised Statutes, limiting the use of “no damage for delay” clauses in public contracts. For example, A.R.S. § 34-221(F) provides:

A contract for the procurement of construction shall include a provision which provides for negotiations between the agent and the contractor for the recovery of damages related to expenses incurred by the contractor for a delay for which the agent is responsible, which is unreasonable under the circumstances and which was not within the contemplation of the parties to the contract. This section shall not be construed to void any provision in the contract which requires notice of delays, provides for arbitration or...