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No-damage-for-delay Clause Violated Virginia Statute Delay-damages; Disclaimers

Saturday, January 03, 2004 11:49 am

No-damage-for-delay Clause Violated Virginia Statute Delay-damages; Disclaimers

The Virginia Supreme Court has ruled that a "no-damage- for-delay" clause in a public works contract violated the state procurement code and was unenforceable.

The Upper Occoquan Sewage Authority awarded a contract to the joint venture of Blake Construction Co., Inc./Poole & Kent (Joint Venture) for construction of a waste water treatment facility in Fairfax County. The contract included General Condition 91.L which stated that an extension of time would be the contractor's sole remedy for delay unless the delay was both unreasonable and resulted from the project owner's bad faith, malice, gross negligence, or abandonment of the project.

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