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2.8 Limitation of Liability

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Clause 1.15 of the 2017 Red and Yellow Books/clause 1.14 of the 2017 Silver Book limits the parties' liability to one another in connection with the Contract in two ways:

1 neither party is to be liable to the other party for ‘loss of use of any works, loss of profit, loss of any contract or for any indirect or consequential loss or damage’ with certain exceptions; and

2 a limit is placed on the total liability of the Contractor to the Employer, again with certain exceptions.

In the 1999 editions clause 17.6 also limits liability in the above two ways but with fewer exceptions.

In the 2017 editions there is an overall exception in clause 1.15/1.14, in that the clause does not limit liability in any case of ‘fraud, gross negligence, deliberate default or reckless misconduct by the defaulting Party’. The 1999 editions have a similar overall exception, except that ‘gross negligence’ is not among the types of default listed.4

The 2017 FIDIC Contracts

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