Q&As

Should a consultant accept a clause indemnifying the employer for any breach of the appointment?

read titleRead full title
Published on LexisPSL on 28/07/2014

The following Construction Q&A provides comprehensive and up to date legal information covering:

  • Should a consultant accept a clause indemnifying the employer for any breach of the appointment?

Should a consultant accept a clause indemnifying the employer for any breach of the appointment?

Most standard form consultant appointments and building contracts do not contain clauses requiring the consultant/contractor to indemnify the employer against losses caused by any act or omission of the consultant/contractor. However, some employers will seek to include such provisions in construction contracts, including consultant appointments (this Q&A discusses indemnities in both consultant appointments and building contracts). Public sector clients will sometimes have such wide reaching indemnity provisions in their standard terms and conditions.

The potential effects of an indemnity will depend on the precise wording of the relevant provision in the contract, but generally speaking, indemnities are not subject to the usual requirements which apply to claims for breach of contract, ie causation, remoteness of damage and the requirement to mitigate losses. The limitation period for a claim under an indemnity can also be longer than it would be for a breach of contract claim. The liability under an indemnity can therefore be considerably more than it would be for a simple breach of contract claim. Therefore consultants, suppliers and contractors will usually try to resist wide reaching provisions which require them to indemnify the employer against any losses, costs, claims and other damages suffered by the employer due to an

Related documents:

Popular documents