What is indemnification in construction contracts?

Indemnification is a legal term used in construction contracts in Washington and across the United States. It is a promise that one party in a construction contract will not be held liable for any liability, damages, or losses incurred by the other party, or that one party will reimburse the other party for any costs or expenses related to a potential legal claim or dispute. For example, if an architect designs a building that has structural defects, the contractor would likely be found liable in a lawsuit. However, the contract between the architect and the contractor might include an indemnification clause stating that the architect agrees to indemnify the contractor for any costs or expenses associated with the lawsuit. This means that the architect would be responsible for paying the contractor’s legal fees, any court costs, and any damages that may be awarded in the lawsuit. In addition to protecting parties from legal claims, indemnification clauses can protect them from other costs associated with a breach of contract. A contractor may agree to indemnify a property owner for any damages resulting from the contractor’s failure to fulfill the terms of the contract. Overall, indemnification is an important term to be aware of, especially when considering construction contracts in Washington. It’s important to know the legal implications of any indemnification clauses included in a contract before signing, as failure to abide by them can lead to costly and time-consuming disputes.

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What is indemnification in construction contracts?

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