Contract Language (Owner Liability Limitation)

An RCAC member has shared an example of contract language that his company is encountering with greater frequency recently in owner-created contracts, and we are sharing that contract language and encouraging roofing contractors to aggressively resist such contract provisions.

Essentially, it is a provision that limits the liability of the owner to “its interest in the property” and it is an attempt to shield the owner from any personal responsibility for payment. It’s normal and accepted practice to limit stockholder/member liability in limited liability entities, but this is a significant step farther.

Following is an example of the language:

If you have concerns or similar contract language you would like to share with other roofing contractors, please reply to Marc Connerly at mconnerly@connerlyandassociates.com, and we will circulate the information and/or seek ways to assist you with your contract language concerns.

The most effective way for contractors to prevent contract language such as this from becoming accepted practice is for all of us to work together to resist such provisions in contracts.

Marc Connerly, Executive Director, mconnerly@connerlyandassociates.com