8 Indemnity and insurance

8.1 One of the most important functions of a building contract is to establish a clear allocation of liability for the risks inherent in any construction operation, i.e. the risks of accident, injury and damage to property. Should any unfortunate incidents occur, it is vital that there should be no room for dispute about who is liable for the losses, and that all concerned are clear about what procedural steps must be taken. Ambiguity will only lead to confusion and delays, which will benefit neither party.

8.2 Normally a building contract will set out the specific events for which the contractor is liable, and require the contractor to indemnify the employer in respect of the resultant losses, for example for injury ...

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