No Damages for Delay Clauses are pretty standard in commercial and public contracts but what happens when the owners delays are unreasonable? Do contractors have any recourse given that they knowingly entered into the contract that gave up their common law right to delay damages?
You have to be careful when doing residential projects. First, residential jobs generally come with a higher risk of litigation because a great deal of protection is given to homeowners and consumers under the Deceptive Trade Practices Act.
Secondly, in Texas, the Property Code requires that you jump through extra hoops to perfect a lien on a homestead. The first step is a written contract. This may seem like a “no brainer” but unfortunately, there are a number situations were contractors begin working without any written agreement only to be left holding the bag later.
The second step, and one that is often overlooked is obtaining the signatures of both spouses on residential jobs. The Texas property code requires this to have been done before any lien can be perfected on a residential homestead. Unfortunately, many contractors don’t know this and file invalid liens. I discuss this a bit more below.