By Barry R. Geisler
Source: Brownfield Renewal Online
As a result of the ongoing economic downturn, General Contractors (GC),
Construction Managers, trade contractors, remediation contractors and
all others who face daily environmental risks are facing unprecedented
challenges in their efforts to remain competitive. With stiff
competition on each project, it is easy to overlook a very important
aspect of most construction contracts: The indemnity provision.
An indemnity or “hold harmless” provision requires one party (the indemnitor) to reimburse and, in some cases, defend the other party (the indemnitee) against certain claims brought against the indemnitee by a third party. The purpose of the provision is to transfer the costs associated with such claims from the indemnitee to the indemnitor. It is important to understand that an enforceable indemnity clause does not relieve the indemnitee of its liability. Rather, such a provision transfers the obligation to pay the costs associated with that liability to the indemnitor....
An indemnity or “hold harmless” provision requires one party (the indemnitor) to reimburse and, in some cases, defend the other party (the indemnitee) against certain claims brought against the indemnitee by a third party. The purpose of the provision is to transfer the costs associated with such claims from the indemnitee to the indemnitor. It is important to understand that an enforceable indemnity clause does not relieve the indemnitee of its liability. Rather, such a provision transfers the obligation to pay the costs associated with that liability to the indemnitor....