The contract caps your liability at £2m. Your subcontractor’s cap is £25,000.

Risk flows down a chain of contracts, and it almost never flows all the way. The gap it leaves behind has a price nobody quoted.

By Steve 5 min read
Abstract bridge artwork for The contract caps your liability at £2m. Your subcontractor’s cap is £25,000.

A firm signs a customer contract with a liability cap set at the contract value, or at £2m, or at whatever the customer’s procurement team insisted on. Three weeks later, a subcontractor is engaged on the supplier’s own standard terms, which cap their liability at the fees paid, a few thousand pounds, and exclude anything indirect. The work is delivered by the subcontractor. The promise was made by the firm. Between those two documents sits a quantity of retained risk that nobody costed, nobody approved, and nobody insured. This is…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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