Consequential Damages Provisions in Construction Contracts: Legal Issues

Public entities negotiating transportation construction contracts must strike the right balance between protecting the public from risk and affording counterparties the flexibility necessary to complete projects. The public nature and cost of transportation construction projects creates a risk of large consequential damages awards, leading to a proliferation of different contractual clauses and strategies to mitigate this risk.

The TRB National Cooperative Highway Research Program's NCHRP Legal Research Digest 88: Consequential Damages Provisions in Construction Contracts: Legal Issues explores the issues associated with consequential damages provisions in construction contracts, and it provides guidance to those drafting such contracts.