Danger: the indemnity clause may contain provisions that can put you out of business! They are so common, that they are assumed insignificant and not read.
You should only indemnify someone for your or your employees’ negligent actions which occur in the performance of your work. You can generally obtain an insurance policy that will protect you and your employees from claims that may arise from these types of negligent acts. Do not indemnify the contractor or owner beyond the actions you or your employees take on in the performance of your contract.
10. Governing Law
You might cruise right by this provision thinking it’s pretty insignificant. However, it’s quite the contrary.
Agreeing to be bound by the statutes of a different state than your principal place of business may cause you to deplete valuable resources, time and money to defend your position. Minimize the cost of a potential dispute by making a deliberate decision as to the forum in which to arbitrate or litigate should a conflict arise.
A Rule of Thumb
Take the time to read and understand your subcontract agreements, consult with attorneys that specialize in construction law and sign your contracts with confidence.
This article does not provide legal advice and should not to be construed or relied upon as legal advice. If you require legal advice on any of the issues raised in this article, please consult with an attorney.