This episode is a re-run. It was originally published in August 2024.

This one clause can bankrupt a profitable project overnight.

Consequential damages can make you liable for your client’s loss of profit, even when your own margin is razor thin.

With 65% of construction companies facing unexpected claims averaging over $500,000, this risk is far from theoretical.

In this episode, we break down why this clause is a silent company ender and how it shifts massive, unpredictable liability onto subcontractors.

Listen in.

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Timestamps:

(1:31) - What is this crucial clause in your contract that could make or break your business?

(2:15) - An unexpected claim for loss of profits can wipe out your gains completely

(3:15) - 65% of construction companies have faced unexpected claims for consequential damages, with the average claim amounting to over $500,000

(4:00) - Consequential damages can lead to claims that far exceed the value of the original contract

DISCLAIMER: The content of this podcast does not constitute legal advice, is not intended to be a substitute for legal advice, and can not be relied upon as such. You should seek legal advice or other professional advice in relation to any matters you or your business may have.

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Avoid This Costly Contract Clause: Save Your Construction Business [#ThrowbackThursday] | Ep. 413

Construction Secrets

Avoid This Costly Contract Clause: Save Your Construction Business [#ThrowbackThursday] | Ep. 413