There is an “issue du jour” in almost every new major design and construction project—limitation of liability.
The architect and construction manager (CM) or contractor1 each seeks to fix a cap on their liability for the project. The issue is then negotiated, since the stakes can be high for all parties—architect, CM, and Owner. (The developer of the project or owner of the property is often referred to as the “Owner” in such agreements.) While the results of these negotiations vary with the type of project and foreseeable risks, the topics discussed are often common. This article discusses those topics.
