A 'no-damage-for-delay' clause in a contract typically:
Explanation
A no-damage-for-delay clause leaves added time as the contractor's only remedy for the delays it covers, so extended overhead and idle-equipment costs stay with the contractor. Owner payment of delay costs is what a compensable-delay or changes clause does — the opposite result. A daily amount owed for finishing late is liquidated damages, which runs against the contractor rather than limiting its remedy. And the clause does not excuse the completion date: the schedule stays, only the money claim goes. On public work, Public Contract Code §7102 stops an agency from enforcing such a clause for delay the agency itself caused.
Law Reference: Common law contract clause; cf. Public Contract Code §7102 (public entities may not enforce a no-damage-for-delay clause against delay the entity itself caused)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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