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A net contribution clause is an essential clause to be included in the architect’s terms of engagement. The RIBA and many other construction disciplines have the clause in their appointment documents. In order to understand the reason for having this kind of clause, it is necessary to consider a situation where a client suffers some kind of monetary loss through some negligence on the part of consultants working on a project. The purpose of a net contribution clause is to ensure that the architect is only liable to pay the damages for which he or she is responsible. The best net contribution clauses include contractors and specialists as well as consultants as people who must share in the liability. In summary, the courts have said that a net contribution clause is widely used. It does not exclude or restrict liability, it is not unusual or onerous, and it is fair and reasonable.
A net contribution clause is an essential clause to be included in the architect’s terms of engagement. The RIBA and many other construction disciplines have the clause in their appointment documents. In order to understand the reason for having this kind of clause, it is necessary to consider a situation where a client suffers some kind of monetary loss through some negligence on the part of consultants working on a project. The purpose of a net contribution clause is to ensure that the architect is only liable to pay the damages for which he or she is responsible. The best net contribution clauses include contractors and specialists as well as consultants as people who must share in the liability. In summary, the courts have said that a net contribution clause is widely used. It does not exclude or restrict liability, it is not unusual or onerous, and it is fair and reasonable.
Net Contribution Clause
Chappell, David (author)
2020-01-07
1 pages
Article/Chapter (Book)
Electronic Resource
English
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