Chapter 21 Responses to proportionate liability

The appropriate practical response to proportionate liability will depend upon the location and the particular circumstances. Those responses may include:

  • Contracting out provisions in NSW, Western Australia and Tasmania.
  • Drafting contract obligations in terms of results, rather than process, and avoiding the inclusion of obligations requiring a party to exercise reasonable care.
  • Specifically dismissing implied obligations to exercise reasonable care in services contracts.
  • The principal obtaining indemnities concerning the works from parties who are not involved in the project and who cannot cause loss, such as parent companies.
  • An arbitration clause in Victoria.
  • Appropriate insurance.
  • Careful pleading of claims.
Updated January 2020