Construction Law/Limit of Liability

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Question
We are using modified fiddic,so in a contract "The total liability of the contractor under this contract will not exceed one hundread percent of the contract price.This limitation of liability will not apply if the contrcator has caused the damages or loss by willful misconduct or criminal negligence."Please explain

Answer
Dear Shoaib,

The liability of Contractor in your case is limited with his Contract Amount, meaning that in case of something goes wrong, the penalty, compensations, etc. that Contractor may pay is limited however, with two exceptions, willful misconduct, which means the damages made intentionally by Contractor or if he commits criminal negligence. To give an example during construction, if a contractor do not take measures to protect environment and due to spill of chemicals gives damage to the environment, it may be categorized as above. In that case, the Employer may take legal action to penalize.

Best Regards

IRVALI  

Construction Law

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ALI IRVALI

Expertise

FIDIC, Arbitration Procedures, Claim Management, Project Management.

Experience

I have experience of working at 6 countries in MENA region (algeria, Libya, Saudi Arabia, Oman, Pakistan)as the Regional Director and General Manager of a construction company. I have experience on various applications of FIDIC and construction law, arbitration procedures, claim management, project management.

Organizations
CEO of TURCON Construction presently. www.turcon.com.pk

Education/Credentials
M.S. Civil Engineer, Various Courses on Project Management, Seminars on FIDIC.

Past/Present Clients
National Highway Authorities of various countries, Water and Power Development Authorities, Karachi Port Trust, etc.

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