17.4 LIMITATION OF LIABILITY

4.17.4 Limitation of liability: Clause 17.6

This is a very important provision in the FIDIC Books and covers both the

scope and the extent of the parties ’ liabilities to each other in general.

Consequential loss or damage

The first limitation is that neither party is to be liable to the other for what is

sometimes called ‘indirect’ or ‘consequential’ loss or damage. The clause lists

examples of this as ‘loss of use of any Works, loss of profit, loss of any contract’

and then refers more generally to ‘any indirect or consequential damage’, other

than as specifically provided under clauses 16.4 (payment on termination) or