Indemnification Clause Unenforceable if Negligent Parties Are Indemnified

by Kent Holland | Feb 9, 2011 | indemnification clause, Newsletter Article

Where an indemnification clause in a construction subcontract was so broad as to require the subcontractor to indemnify a project owner and construction manager for their own negligence, a court held the clause could not be enforced during a summary judgment motion...

Limitation of Liability Clause Protecting Owner is Not Voided by Owner’s Breach of Contract or Alleged Bad Faith

by Kent Holland | Feb 9, 2011 | limitation of liability clause, Newsletter Article

A Limitation of Liability clause (LoL) in a contract was upheld by a court notwithstanding allegations that the project owner had acted in bad faith in its treatment of the contractor.  It was held to apply, however, only to the damages that would be awarded under the...

Differing Site Conditions, Defective Specifications: One Coin, Two Sides

by Kent Holland | Feb 9, 2011 | differing site conditions, Newsletter Article

Unforeseen site conditions typically spawn two types of claims based on two distinct but related theories: differing site conditions (DSC) and defective specifications.  A contractor may attempt to circumvent the limitations on recovery under a DSC provision by...

Anti-Indemnity Statute does not Void Additional Insured’s Coverage

by Kent Holland | Feb 9, 2011 | indemnification clause, Newsletter Article

Where a construction contractor signed a contract containing an indemnification clause agreeing to indemnify the project owner for all claims arising under the contract, including those caused by the owner’s negligence, a court held that a liability insurance policy...

Managing Killer Clauses in Construction Contracts: Part II

by Kent Holland | Feb 9, 2011 | construction contract tips, Newsletter Article

This is the second part of a two part article. The first part was in last month’s issue of this Report. Consider the following basic “killer” clauses, and how they might be managed. Notice Requirements You must know your contract. The first step in good contractual...

Killer Clauses in Construction Contracts: Part I

by Kent Holland | Feb 9, 2011 | construction contract tips, Newsletter Article

Today’s builder must be as expert at managing its contractual risk as it is at managing a safety program. Many large and small contractors, once considered outstanding builders, are out of business today. Some of the contractors may have even been good financial...