Construction Contract – Article Interpretation
What does the following mean in layman’s terms (especially the 2nd sentence)? Taken from the Schedule provision of construction contract. I am ‘Subcontractor’; big bad General Contractor is ‘Contractor.’
”If Subcontractor should default in performance of the work or otherwise commit any act which causes delay to the prime contract work, Subcontractor shall be liable for all losses, costs, expenses, liabilities and damages, including consequential damages and liquidated damages, sustained by Contractor, or for which Contractor may be liable to Owner or any other party because of Subcontractor’s default. Except to the extent Contractor or Subcontractor are liable to any third parties for liquidated damages or consequential damages, and have a right of contribution or indemnification by the other by way of law or contract for which each shall remain responsible, Contractor and Subcontractor waive claims against each other for consequential damages or liquidated damages arising out of or relating to this Subcontract.”