Onerous contract conditions usually backfire

Heaping the bulk of the risk on one party in a construction contract is more likely to lead to disputes.  It is common to see a party who believes it has the upper hand insisting on onerous contract terms which pass risks onto others who are least able to manage them. In turn, those parties pass the risks down the contractual chain to the point where God help them if anything goes wrong, because there won’t simply be enough insurance, bond money, or capital, to cover the consequences.  In New Zealand, these onerous terms are seen all too often, and not only in contracts between private parties but often also in government and local authority contracts.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s