indemnification clause in construction
does indemnification clause in a construction contract cover the owner only from third party liabilities or it also ensures that to make good the losses due to non-perfomance of contracted work?
Re: indemnification clause in construction
Indemnification clauses are not all alike. It is basically a promise to defend others against a named peril. You need to show the entire contract to an attorney to get an opinion on the scope of liability. It is fairly common for clauses to be inserted in a contract that are not enforceable in a court of law, or they may be enforceable in some states and not in others. It is a common mistake for people to cut and paste pieces of contracts together forming a new contract without the advice of an attorney. Insertion of a provision that is not legally enforceable will be invalidated by the Court and may leave the drafter liable to action under the state's Unfair and Deceptive Trade Practices Act, if the purpose was to deceive the other party to the contract.
