Subcontractor Found Liable for Owner s Lost Profits

摘要

One of the biggest risks contracting parties face on private sector construction projects is an owners claim that it is entitled to recovery of lost profits as the result of project delays. Contractors often manage this risk by insisting that owners agree to clauses that waive lost profits and other consequential damages. Another way to manage this risk is through liquidated damages, which define the contractor s liability for delay and enable the contractor to understand its financial plight if the project is delayed.