Management Risk in Contracts

One of the common contractual risks in contracts prepared by the lawyers of employers is to impose on the contractor a liability to pay penalties or liquidated damages without a ceiling or limit for delay in completing the works. Another contractual risk is to hold the contractor liable for damage or injury arising from the contractor's default or negligence without any limitation.

Risks and contingencies which the contractor should measure and attempt to shift to the employers, such as risks of force majeure, war risks, risks of unforeseen conditions. One of the common contractual risks in contracts prepared by the lawyers of employers is to impose on the contractor a liability to pay penalties or liquidated damages without a ceiling or limit for delay in completing the works. Another contractual risk is to hold the contractor liable for damage or injury arising from the contractor's default or negligence without any limitation.

Read the rest of the article in the India Cement & Construction Materials Journal Magazine, Issue 22-23.