Section 12.17 No Damage for Delay Clauses in Subcontracts

• Library: Construction Law 2016 Supp

5. (§12.17) No Damage for Delay Clauses in Subcontracts

There is disagreement among courts as to whether a “no damage for delay” clause in the general conditions of the general contract is binding on a subcontractor by virtue of a clause that incorporates the general conditions into the subcontract by reference. S. Leo Harmonay, Inc. v. Binks Mfg. Co., 597 F. Supp. 1014 (S.D.N.Y. 1984); Walter R. Cliffe Co. v. Du Pont Eng’g Co., 298 F. 649 (D. Del. 1924); Bates & Rogers Constr. Corp. v. Greeley & Hansen, 486 N.E.2d 902 (Ill. 1985); Loughman Cabinet Co. v. C. Iber & Sons, Inc., 361 N.E.2d 379 (Ill. App. Ct. 1977).

If the subcontract has a “no damage for delay” clause but the general contract does not, the traditional rule has been that the general contractor cannot “pass...