True or False: The contractor must not incur penalties if delays occur due to their fault?

The statement is false because contractors are generally responsible for managing their work and the timelines set within the contract. If delays occur due to the contractor's fault, they may incur penalties or liquidated damages as specified within the contract terms. Contracts often outline the expectations for performance and can include provisions that penalize the contractor for failing to meet deadlines that are within their control.

In addition, standard industry practices and legal principles typically hold contractors accountable for delays caused by their own decisions or lack of action. This can include issues such as poor scheduling, inadequate resource allocation, or failure to comply with project specifications.

While there may be certain circumstances that allow for delays without penalties—such as acts of God or other unforeseen events—these do not pertain to delays caused directly by the contractor's own actions. Hence, the correct option reflecting the responsibility of the contractor in relation to their own delays is that they must incur penalties if those delays are due to their fault.