Depending on the contractual terms your responsibility could be absolute. Make sure the contract states what risk you can cover.
The purpose of any contract is in significant part the allocation of risk between the contracting parties. This includes not only the allocation of contractual liabilities, but also liabilities based upon common law tort principles (which are civil wrongs, other than breach of contract, for which the law provides a remedy, such as negligence). The allocation of risk is a factor that should be included in bidding and pricing of any construction contract. As a general rule, the rights associated with the allocation of obligations, risk and benefits in a contract can only be asserted by the parties to the contract, who are in privity of contract or privity substitute.
Agenda
Faculty
John A. Snow
Parsons Behle & Latimer
- Attorney with Parsons Behle & Latimer, Salt Lake City, Utah
- Practice consists of general civil litigation, including commercial, professional malpractice, construction, and insurance coverage and defense
- Designated in The Best Lawyers in America as Lawyer of the Year in litigation, real estate, and construction law; and designated in the areas of practice of legal malpractice defense, commercial litigation, and construction
- Designated in Utah Business magazine’s Utah Legal Elite in the areas of business and civil litigation and construction law and as a Super Lawyer in the Mountain States in Super Lawyer Magazine
- Former Chair of the Ethics Advisory Opinion Committee of the Utah State Bar
- Can be contacted at [email protected] or 801-536-6772
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