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Senate advances construction-contract bill to curb "no-damage-for-delay" clauses after amendment
Summary
Lawmakers passed Substitute Senate Bill 252 to limit enforcement of broad 'no damage for delay' clauses in construction contracts when substantial bargaining-power imbalances exist. Supporters said it protects small subcontractors; opponents warned about state intrusion into private contracting. The bill moved to third reading after a successful amendment.
The Senate amended and advanced Substitute Senate Bill 252, a measure aimed at restricting the use of so-called "no damage for delay" clauses that shift delay costs entirely onto subcontractors.
Sponsor Senator Jenkins described situations where subcontractors are left unpaid or forced to accept final payment only after waiving legal claims. "No damage for delay clause forces contractors and some…
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