How can Professional Liability be Limited?

by | May 29, 2022 | Topics | 0 comments

General Terms and Conditions, frequently referred to as “Boilerplate,” defines how the Client and Consultant will relate to each other in a business relationship without regard to a specific project. The following is a critical “Boilerplate” item that if not clearly and equitably stated will likely result in misunderstandings and confrontational situations:

Limit of Liability – In many cases, fees charged for professional design services are significantly lower than the potential exposure to risk associated with construction of the project.  For a more equitable situation, limiting the Consultant’s liability to a fixed amount or one related to the Consultant’s fee is desirable.  Liability may be limited by adding a contract clause stating the amount as described above. Additionally, some professional liability carriers offer a premium discount to Consultants whose contracts contain the Limit of Liability provision.

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Lowe Consulting, LLC
John M. Lowe, Jr., P.E.
Happy Valley, OR