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Limiting Your Liability by Jeffrey G. Gilmore and Al B. Hill When today's builder enters into a construction contract, his potential liability is much greater than in past years. Whether the liability is grounded in tort or in contract law, the modern-day explosion of litigation has led to greater and more frequent jury awards. This increased exposure to law suits has led to higher insurance rates for the contractor and higher construction costs in general. In an attempt to remain competitive without taking undue risks, many businesses have adopted measures to reduce their liability. A primary tool for this purpose is the limitation-of-liability contract clause. In the construction industry, with most materials suppliers and A/Es using limitation-of-liability clauses, the brunt of the liability falls