This is the second of a three-part series exploring the Texas Supreme Court’s decision in Zachry Construction Corp. v. Port of Houston Authority of Harris County. A summary of the case can be found at Part 1 of the series. Part 3 will address the lien waiver issues raised by the decision. This post considers the “no-damages-for-delay” aspects of the case, specifically exceptions to enforcement of such contract clauses.
What Zachry Says About No-Damages-for-Delay Clauses
The Texas Supreme Court began its analysis by noting that as a general rule, a contractor can assume the risk of, and not seek damages for, construction delays by agreeing to a no-damages-for-delay clause (“NDFD clause”) in a construction contract. The court, however, then went on to note five “generally recognized exceptions” to the enforcement of such clauses:
N.C. Construction Law, Policy & News 