If you own construction company, you are likely well aware of all the possible problems that can arise during a project. Unfortunately, it is impossible to eliminate every potential disaster that could befall a given undertaking, but you can take measures to protect yourself from the possible financial fallout. And one of the most important steps you can take is making sure that your contracts contain indemnity agreements.
An indemnity agreement can stipulate that others will be responsible for bearing the costs of specified types of damages, including legal costs. There are a variety of instances in which an indemnity clause could protect your interests, including:
- To cover compensation costs caused by property damages or injuries.
- If the contract has been breached.
- In cases of property infringement.
- To cover liability costs related to negligence.
Of course, when you enter a contractual agreement with another party the hope is that you will never have to give the document a second look and everything works out as planned. However, there are no guarantees that this will be the case and a contract dispute involving a high-value construction project can cost you time and vast sums of money if not properly reconciled.
There are myriad items that can be constrained in indemnity clauses and you want to make sure that your contract clearly states what you are protected against and how certain scenarios are to be handled. This is why it is important to have an experienced commercial real estate attorney help you craft a contract that offers built-in protections in case of unforeseen problems. And if you should ever have to have a dispute settled, the attorney can act on your behalf to try and bring things to a positive conclusion.