No Damage for Delay Clauses Have Limits on Louisiana Public Works Projects

The Louisiana Public Works Act prohibits “no damage for delay” clauses in contracts for publicly bid projects. Recently, the State of Louisiana tested the boundaries of that prohibition by including a provision in a public contract that limited the contractor’s recovery of delay damages to situations where there was a complete stoppage of work solely attributable to the fault of the public entity/owner.  The Louisiana First Circuit Court of Appeal examined this provision and concluded that it was an impermissible attempt by the State to limit the contractor’s ability to recover delay damages to specific circumstances narrower than allowed in the Public Works Act.  (more…)