In South Carolina, "no-damage-for-delay" clauses are generally valid and enforceable. However, South Carolina does apply certain exceptions, meaning that under specific circumstances, a "no-damage-for-delay" provision can be unenforceable.

An example of a "no-damage-for-delay" clause is one in which the contract between a subcontractor and the contractor states that if a delay is caused by the owner, contractor, or other subcontractors, this subcontractor may request only an extension of the time allowed for performance and will not receive damages or additional compensation, unless the contract entitles the contractor to receive additional compensation for such a delay.

In U.S. for the use and benefit of Williams Electric Co. v. Metric Constructors, Inc., 480 S.E.2d 447 (S.C. 1997), the South Carolina Supreme Court adopted four exceptions to "no-damage-for-delay" clauses. In the following four circumstances, a "no-damage-for-delay" clause will be unenforceable for violating the implied obligation of good faith and fair dealing present in every contract:

• Delay caused by fraud, misrepresentation, or bad faith
• Delay caused by direct, active, willful interference with the work of the contractor
• Delay is so unreasonable in duration that it amounts to an abandonment of the contract or would justify the contractor’s abandonment. Abandonment can be inferred from the parties’ conduct.
• Delay caused by gross negligence, i.e. willful, wanton, reckless conduct.

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