On the basis of the explanatory memorandum to this decision, it is important for parties negotiating compensation rules in contracts to carefully determine what they want to compensate and to develop the language to achieve this. As explained in this case, the “explicit negligence rule” in force in most states means that if you wish to be compensated for your own negligence, you must clearly state this intention in the treaty. In this case, the contract has fulfilled this contract for the main contractor. A harmless contractual clause contained in a contractual document should have a specific language to protect the contractor or the intended parties. The contract must include provisions to neglect claims, damages, losses, expenses or any other means of recourse against the contractor in the event of problems or disputes in the construction project. `The Contractor undertakes to: __________ (city/state/county) liability and right to damages resulting from bodily injury, death, property damage, illness or less of all costs resulting from the contractor`s performance under this Housing Installation or Construction Agreement to be paid out of the proceeds of the Owner`s Rehabilitation Loan; to defend, compensate and keep compensated. The Contractor shall act as an independent Contractor with respect to the Owner. Any county might need a specific language to tackle the above issues, so be sure to check the validity of your clause and contractual language. A subcontractor cannot compensate a party (whether the main contractor or the owner) for the sole negligence of the main contractor or the owner. The GOL provides that exemption agreements in which owners or contractors attempt to transfer the risks of negligence to other contractors or subcontractors are not applicable. If you wish to limit the exemption to damage and injury caused by your own performance, you can clearly state this in the contract. For example, if you are a design professional, you can specify something by compensating the other party only for damages “to the extent that they result from the negligence, errors or omissions of the design professional”.

If you are a contractor, you may not be able to limit your compensation to acts of negligence, but you can still limit your compensation to damages “to the extent that they are caused by you”. . . .