Legal Question in Construction Law in California

Re: Construction Contract - Article Interpretation

If you don't understand a contract clause, it is always legitimate to ask for clarification and a written rewrite or written explanation. Here, there is a waiver of liquidated/consequential damages except to the extent they are related to third parties. Liquidated damages refers to a clause where people agree that its really hard to calculate how badly they will get hurt if the other party does some bad act and so they are agreeing up front to an amount (e.g. $500 per day for construction delay). In this case, the contractor is shifting/limiting liability for liquidated damages in two directions: (1-re third parties) onto the subs to the extent the subs caused the problem/delay and (2-between contractor & sub) limiting the ability for contractor/sub to claim liquidated or consequential damages against one another. This is a way of creating greater predictability concerning risk of potential liabilities under the contract.

Disclaimer: This explanation relates only to the language presented in the posting and is not intended to create an attorney-client relationship or be specific legal advice, but only to provide general education concerning the issues presented. For specific legal advise, you should have an attorney review the entire agreement in its entirety.