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;
  • appropriate insurance; and
  • careful pleading of claims.

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Updated 5 July 2011