Common exclusions to liability caps in construction contracts: Gross negligence, fraud and wilful misconduct

摘要

The terms "wilful misconduct'" "gross negligence", and "fraud" are commonly used by parties to construction contracts to describe the type of conduct that is usually excluded from limitation of liability clauses. This article considers the common law interpretation of these terms, recognising that while the concepts of wilful misconduct and fraud are reasonably well understood by Australian courts, the meaning of "gross negligence" is unsettled and susceptible to differing interpretations.