Indemnities and Limitations of Liability in EPC Contracts

This Skill Bit shows, that in EPC contracts, indemnity obligations should be limited to contractor negligence and specific liabilities like death, injury, or property damage, with clear wording to avoid misunderstandings. Indemnities must be capped, exclude Owner’s Risks, and be covered by insurance, with the indemnifying party controlling claims defense. A limitation of liability clause usually includes an aggregate cap, exclusion of reliance on representations, and a disclaimer for consequential losses, with exceptions for fraud or willful misconduct, ensuring clarity and defined liability scope.

Duration approx. 4 Min.

Tier: advanced

A part of Understanding EPC Contracts: Standard Clauses for Clear Execution course.