In large-scale infrastructure and construction projects, delays are often an inevitable reality. To shield themselves from financial liabilities arising out of project prolongations, employers – particularly government entities and public-sector undertakings (PSUs) – frequently incorporate standard ‘No Damage for Delay’ or ‘No Liability’ clauses. These clauses aim to restrict the contractor's remedy solely to an extension of time (EOT), barring any monetary claims for extra overheads, idling costs or lost profits.

Origin and relevance

Understanding the nature, enforceability and judicial treatment of these clauses under Indian contract and arbitration law is vital for both project owners and contractors...

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