No-Damage-for-Delay · Delay Claims · Construction Contracts · Financial Protection
No-Damage-for-Delay · Delay Claims · Extended General Conditions · Construction Contracts
No-Damage-for-Delay
Protection.
No-damage-for-delay clauses appear in most standard commercial subcontracts. They state that your only remedy for GC-caused delays is a time extension — no additional compensation. In most states they're enforceable. But they have exceptions that still allow delay cost recovery when the clause is drafted broadly. Here's what to know and how to protect yourself.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
You're Absorbing Delay Costs That Should Be Recoverable
When a GC delays your work — changes the sequence, holds your start, keeps you on site longer than planned — you incur real costs. Extended supervision, equipment on standby, labor at reduced productivity, and material price escalation are all quantifiable. But if you've signed a no-damage-for-delay clause and you don't know the exceptions, you assume all of those costs are unrecoverable.
02
You Don't Know the Exceptions in Your State
No-damage-for-delay clauses are not absolute in most states. Courts have carved out exceptions — active interference by the owner or GC, fraudulent concealment of the delay, delays so extreme they constitute abandonment, or delays not contemplated by the parties when the contract was signed. These exceptions vary by state and by how the clause is drafted.
03
You Didn't Give Notice When the Delay Started
Even when exceptions apply, most contracts require written notice of delay within a specific period — often 7–14 days of the delay event — to preserve any claim. Most subcontractors don't give timely notice because they don't know the clause has exceptions or because they're hoping the delay resolves quickly. By the time the delay is clearly a problem, the notice window has closed.
How SPM Fixes It
The Notice Process — Send It Every Time
When a delay event occurs — regardless of whether you think the no-damage clause applies — send written notice within the contract's required period. Describe the delay, the cause, the impact on your work sequence, and a preliminary estimate of the cost. Notice within the required window preserves your options. Missing the window eliminates them.
Document Delay Costs From Day One
Whether or not the clause has exceptions that apply to your situation, document every delay cost as it occurs — daily logs showing work impacted, labor and equipment on standby, extended supervision, schedule impact. SPM tracks delay-related costs in ControlQore for clients who flag an active delay situation — creating the contemporaneous documentation that delay claims require.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
What is the difference between a time extension and delay damages?
A time extension gives you more time to complete the project without being penalized for lateness. It does not compensate you for the cost of the delay — additional supervision, equipment standby, escalated material costs. Delay damages compensate for those additional costs. A no-damage-for-delay clause allows time extensions while prohibiting delay damages. The exceptions to the clause, when they apply, restore your right to delay damages in addition to any time extension.
Does the no-damage-for-delay clause apply to delays caused by other subcontractors?
It depends on how the clause is drafted and how your state interprets it. In most cases, the clause covers delays caused by any party on the project — including other subcontractors whose work must precede yours. However, if the GC failed to coordinate or manage the other subcontractor's schedule — which is typically the GC's responsibility — the active interference exception may apply.
Megan Shapiro, Esq. can analyze your specific contract language and the facts of the delay situation.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.