A subcontract contains a clause limiting compensation for owner-caused delay to time extension only. What risk does the subcontractor need to recognize?
Correct Answer
B) The clause may bar delay-cost recovery while allowing more time, subject to enforceability
A no-damage-for-delay clause may limit the remedy for delay to additional time rather than delay cost, subject to contract language and enforceability. Other choices invent effects unrelated to the clause.
Why This Is the Correct Answer
A no-damage-for-delay clause may limit the remedy for delay to additional time rather than delay cost, subject to contract language and enforceability. Other choices invent effects unrelated to the clause.
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