Contract Tips for Subcontractors. Limitation of Liability. One of the best ways to limit overall liability is to include a “limitations of liability” provision. You can limit your overall liability to (a) the contract value; (b) the insurance policy value; (c) or a negotiated amount. Attempt to obtain a mutual waiver of indirect or consequential damages such as punitives, special, exemplary, incidental or consequential, loss of profits, loss of use, loss of revenue, or loss of capital. These damages are not intended to compensate the wronged party for its actual losses. Finally, include a provision that waives obligations to perform when there are occurrences beyond your control. Such “force majeure” occurrences include acts of God, acts of government entities, strikes, labor disputes, fires, explosions or casualties, thefts, vandalism, riots or war, and acts of terrorism, and/or unavailability of materials. To learn more about subcontract reviews go to stulawgroup/news/ .
Posted on: Sat, 05 Oct 2013 02:27:40 +0000