Similarly, a Contractor who fails without justification to complete the Project on time may be liable to the Owner for the Owner's delay damages. The contract, for example, may limit the Owner's ability to recover lost profits for delayed completion. Likewise, the contract may limit the Contractor's right to seek delay damages either by express disclaimer or by placing essentially insurmountable notice and proof obstacles in the way of such recovery. Careful legal draftsmanship designed to eliminate the recovery of delay damages, however, may ultimately fail as a result of statutory or common law rights that can override contrary contract terms. Significantly, that statute, while protecting the Contractor's right to assert a delay claim, can result in major penalties should the Contractor fail to prove that claim.
Time is clearly money on a construction project.
Understanding one's rights and obligations, both contractual and legal, is crucial to managing the financial risks associated with delay. Ignorance and passivity are the traits of the party who will inevitably pay for delay. D. Stan Barnhill, a former chair of the Construction Law and Public Contracts Section of the Virginia State Bar, is a principal in the firm.