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Re: Limitation of Liability Clauses -- Contracting through Architect

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Fellow engineers,
 
        Here in Canada our insurance company encourages limitation of liability clauses and disclaimers.
 
        Their strongly recommended limit of liability clause is to limit liability to insurance in force.  Of course, clauses such as the ones in the following post are also suggested.
 
        Their recommended disclaimer is as follows: "These documents are prepared solely for the use of the party with whom the design professional has entered into a contract and there are no representations of any kind made by the design professional  to any party with whom the design professional has not entered into a contract."
 
Regards,
 
H. Daryl Richardson
 
----- Original Message -----
From: Jim Wilson
Sent: Wednesday, November 11, 2009 7:54 PM
Subject: Re: Limitation of Liability Clauses -- Contracting through Architect

$50,000 or 5x/10xfee (whichever is greater) is a common limit for design work.  I base this on past research in this area and on review with my insurance carrier.  Everything is subject to debate in court, but its a starting point for negotiation.  If the client wants a higher limit, then you have an excuse to charge more for the work.
 
Jim


From: Chuck Utzman <chuckutzman(--nospam--at)gmail.com>
To: seaint(--nospam--at)seaint.org
Sent: Thu, November 5, 2009 5:00:00 PM
Subject: Re: Limitation of Liability Clauses -- Contracting through Architect


I limit liability to the amount of my fee & require compensation for third party claims.  IANAL but IMO neither would stand a court test, but the object is to discourage litigation.

.Michel Blangy wrote:
> My clause stipulates X amount of dollars or the engineer's total fee,
> whichever is lesser. What is the enforceability of this type of clause?
>
> Michel Blangy
>
>
>
>
>
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