July/August 2024 - 126

The court determined that clauses that
bar entitlement to recovery for all delay
claims are unenforceable under the Miller
Act, but clauses that establish what the
contractor may recover (i.e. the amount or
measure of recovery) are enforceable.
The court cited the U.S. Circuit Court for the Fourth Circuit's
holding that " the amount a subcontractor is entitled to
recover from a surety on a Miller Act bond 'must be
determined by reference to the subcontract.' United States ex
rel. Woodington Elec. Co. v. United Pac. Ins. Co., 545 F.2d 1381,
1383 (4th Cir. 1976). " The McCorvey court upheld the clause,
reasoning that " the clause here does not determine when
Kirlin may receive compensation for delays, but rather how
much Kirlin may receive: the amount Clark is entitled to
recover from the United States. " The nuance applied in
interpreting the no-damages-for-delay clause in the
McCorvey case illustrates the importance of understanding
the extent of enforceability of these clauses.
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July/August 2024

Table of Contents for the Digital Edition of July/August 2024

TOC
July/August 2024 - Intro
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