Limitation of Liability Clauses in Construction Contracts

Construction Executive covers limitation of liability provisions, commonly called LOL clauses, and how they function as a risk management tool in construction contracts. The article explains the mechanics of capping financial exposure for specific risks and walks through how these clauses are structured, where they appear, and what types of damages they typically address. It’s aimed at contractors who want a working understanding of the legal framework before they sign or negotiate contract terms.

Most estimators read an LOL clause and move on. That’s a mistake made at proposal time that becomes a litigation problem 18 months later. The clause you didn’t push back on during contract execution is the same one the owner’s attorney cites when a $400,000 delay claim gets capped at your contract fee. The AGC’s contract law resources are worth a look here, but the real leverage is in markups during negotiation, not post-award discovery. If your PM isn’t flagging LOL provisions before execution, no one is.

Read the full story at Construction Executive.