contract review

Indemnification Clauses in Construction Contracts: The Risk Transfer Provisions That Shape Liability

Indemnification clauses shift liability and defense obligations between parties. Three types exist — Type 1 (broad), Type 2 (intermediate), Type 3 (limited) — with substantially different risk implications. State anti-indemnity statutes limit enforceability of broad forms. Contractors reviewing contracts need to understand indemnification implications before signing.