Design-Builder Entitled to Contractual Indemnity from Subcontractor for Damages to Turbines
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Contribution Actions,Design-Build,Indemnification,Waiver of Consequential Damages
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Black & Veatch (“B & V”) contracted with Portland General Electric (“PGE”) to engineer, procure and construct a power generating facility called the Port Westward Power Plant, and it subcontracted to a specialty subcontractor to install the combustion turbine and associated air inlet filter house and air inlet filter duct. The combustion turbine was manufactured [...]
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Boilerplate Can Burn!
AIA Contract Form,Boilerplate,Waiver of Consequential Damages
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There are no “industry standard” construction form documents. But the forms issued by the American Institute of Architects (AIA) come close, being widely used. One key provision to be considered is the issue of consequential damages. “Consequential damages” are damages, losses or injuries which do not flow directly and immediately from the wrongful act of [...]
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Contracts requiring a design-build engineering firm to supply “basic engineering packages” for licensing and technology transfer agreements for the design and construction of a processing plant for sodium hydroxide (caustic soda) contained a liquidated damages clause capping the engineer’s liability at 10 percent of its fee, and also contained a waiver of consequential damages clause [...]
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