Many architects and engineers incorporate a limitation of liability clause into their contracts. A limitation of liability clause is exactly what it sounds like: a clause that limits your liability in the event of a claim. Limitation of liability clauses establish “a contractual ceiling on the amount of damages to be awarded if a plaintiff prevails in later litigation between the contracting parties.” Therefore, a limitation of liability clause is a useful precautionary piece of armor to include in your contract.
By Sarah A. Johnson, Esq.
Recent claims have revealed that a number of engineers have not been memorializing the scope of their services in writing, either in a written contract or even in a written work order. While this may not be problematic if the project proceeds smoothly, projects often involve complications and issues, leaving the client/owner dissatisfied with some aspect of work. Nor is it unusual for serious construction defects to surface after the completion of a project. Thus, the best practice is for you to routinely memorialize the scope of your services in writing, preferably through the use of a written contract.