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Contracts & Legal

Delay Damages

In Plain English

The money a contractor loses because of delays caused by someone else on the project.

Definition

Delay damages are the financial losses incurred by the contractor as a result of project delays caused by the owner or other parties. They include extended general conditions, escalated material costs, lost productivity, and additional financing costs. Recovery of delay damages may be limited or barred by no-damage-for-delay clauses in the contract.

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