CAREFUL CONTRACTS liability of a party . These clauses will state that where two or more parties involved in a construction project are each jointly liable for the same loss or damage , the liability of each party will be limited to the amount that would be apportioned to that party on a fair and reasonable basis having regard to their responsibility for the loss or damage . The intention being that if a court or arbitration determines a party is 30 percent responsible for the loss then their liability is limited to 30 percent of the total damages . In the absence of a net contribution clause , under the law of joint and several liability , that party , despite being only 30 percent responsible could be 100 percent liable for the loss .
The effectiveness of net contribution clauses depends on the clarity of their drafting . They are clauses of limitation and therefore any ambiguity will be interpreted against the party seeking to rely on the limitation , usually the consultant or the contractor . An
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