If delays are anticipated for business or other economic reasons, a suspension-of-work clause allows the owner to temporarily pause construction.


Typically suspension-of-work clauses provide for some payment to the contractor during the down time, or some adjustment of the final contract price depending on how long construction is put on hold.For example, a suspension-of-work clause might say: "The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work in whole or in part for such period of time as the Owner may determine." That clause would be followed by any adjustments made to the payment or the schedule as a result of the delay.
 Some states, such as California and Virginia, have laws limiting the enforceability of these clauses, and Ohio has banned them entirely.Even in states where these clauses are not banned, courts dislike them and give little latitude to the party seeking to enforce them. Courts typically decline to enforce them if the cause for the delay was unforeseeable when the contract was made, or if the owner’s intentional acts caused the delay.Courts often throw out a “no damage for delay” clause if your contract also includes a “time is of the essence” clause. If an owner requires a contractor to complete a project as quickly as possible, the reasoning goes, he shouldn’t also be able to deny liability for expenses the contractor incurs because of his own actions., Typically this statement will include a requirement that the contractor provide notice to the owner that his progress is being hindered and request more time to complete the job.


Contractors can still get around these clauses and sue the owner for costs incurred if the owner causes delays through actions that are particularly malicious or done in bad faith.
Allow the owner to suspend or delay work without paying compensation through a “suspension of work” clause.
Check to make sure a “no damage for delay” clause is enforceable in your state.
Include a statement that the contractor cannot file a claim for additional costs if actions by the owner cause the project to be delayed.
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