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No-damage-for-delay Clause Not Enforced Delay-damages; Disclaimers; Overhead

Saturday, April 03, 2004 12:34 pm

 
No-damage-for-delay Clause Not Enforced Delay-damages; Disclaimers; Overhead

A federal district court has ruled that under New York law, a no-damage-for-delay clause in a subcontract did not bar the subcontractor's claim. But the sub could not compute extended overhead based upon the monthly amount carried in its bid.

Palmer Court Associates, LLC awarded a contract to MacQuesten General Contracting, Inc. for construction of multi-unit housing in the Bronx. MacQuesten subcontracted the foundation work to HCE, Inc. The subcontract contained a provision disclaiming MacQuesten's responsibility for "sequencing delays and delays at the hands of the general contractor."

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