Every project is different, so every contract often is as well. This includes the indemnity clauses put into construction contracts here in Massachusetts and elsewhere. It may be necessary to look to current construction law to determine what type of indemnity clause may be put into a particular contract.
When it comes to contracts and construction jobs, the name of the game is often reducing liability in the event something goes wrong. Indemnity clauses help fulfill this goal by reducing the risks associated with the project. Such agreements may also help lower any legal fees that could come about in the future.
The type of clause makes a difference, though. Many clauses address the degree of responsibility when it comes to the negligence of a party involved in the construction project. Many contracts in this industry have one party assuming all of the risk associated with a project unless the risk is the responsibility of the other party.
Indemnity clauses are used for loss claims, property damages and bodily injuries. They also come into play in allegations of breach of contract or property infringement. Situations in which losses or negligence occur could also be covered by these clauses.
General contractors often protect subcontractors, employees and other parties with the use of indemnity clauses. Conversely, there are also conditions under which a subcontractor would be required to indemnify a contractor. In order to know the difference, it may be a good idea to consult with a Massachusetts construction law attorney. If there is time to do so as the contract is being negotiated, that may be the best time to protect the rights of a particular party. If the matter is already in litigation, it would still be a good idea to seek legal counsel.
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