Stephen McCloskey, left, and Timothy McCarron, right, of Semmes, Bowen & Semmes. Courtesy photos What Is the Reach of the AIA General Conditions' Consequential Damages Waiver?
While courts have yet to expressly limit the scope of the waiver provision to consequential damages incurred due to termination of the contract during construction, the placement and content of the provision would seem to give an opportunity to argue for such.
May 03, 2022 at 12:26 PM
8 minute read
Construction
The American Institute of Architects (AIA) Standard Form Conditions for contracts entered into between owners and general contractors contain the following damages waiver:
|- 15.1.6 Claims for Consequential Damages
The contractor and owner waive claims against each other for consequential damages arising out of or relating to this contract. This mutual waiver includes:
|- damages incurred by the owner for rental expenses, for losses of use, income, profit, financing, business and reputation, and for loss of management or employee productivity or of the services of such persons; and
- damages incurred by the contractor for principal office expenses including the compensation of personnel stationed there, for losses of financing, business and reputation, and for loss of profit except anticipated profit arising directly from the work.
This mutual waiver is applicable, without limitation, to all consequential damages due to either party's termination in accordance with Article 14. Nothing contained in this Section 15.1.6 shall be deemed to preclude an award of liquidated damages, when applicable, in accordance with the requirements of the contract documents.
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