White Paper

29 Pages
  • 29 Pages

Risk Allocation in Construction Contracts - Privity of Contract


Is the allocation of risk factored to your bidding and pricing of your construction contracts?

The purpose of any contract is in significant part the allocation of risk between the contracting parties.  This includes not only the allocation of contractual liabilities, but also liabilities based upon common law tort principles (which are civil wrongs, other than breach of contract, for which the law provides a remedy, such as negligence).  In a construction setting, the prime contract allocates risk between the owner and the general contractor, and the subcontract allocates these risks between the general contractor and its subcontractors.  Various provisions contained in construction contracts can also pass-through or drop-down rights, duties, obligations and claims between the owner and the subcontractor. This white paper will address various contractual issues and provisions that allocate risk between the parties to a construction project.



John A. Snow

John A. Snow

Parsons Behle & Latimer

  • Attorney with Parsons Behle & Latimer, Salt Lake City, Utah
  • Practice consists of general civil litigation, including commercial, professional malpractice, construction, and insurance coverage and defense
  • Designated in The Best Lawyers in America as Lawyer of the Year in litigation, real estate, and construction law; and designated in the areas of practice of legal malpractice defense, commercial litigation, and construction
  • Designated in Utah Business magazine’s Utah Legal Elite in the areas of business and civil litigation and construction law and as a Super Lawyer in the Mountain States in Super Lawyer Magazine
  • Chair of the Ethics Advisory Opinion Committee of the Utah State Bar
  • Can be contacted at [email protected] or 801-536-6772

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