Contracts & ExecutionQuestion 203 of 690

An indemnification (hold harmless) clause in a construction contract generally:

a.Sets the down payment amount
b.Shifts certain liability or defense obligations from one party to another
c.Establishes the project completion date
d.Determines the contractor's license classification

Explanation

An indemnification clause allocates risk by requiring one party to protect, defend, or reimburse another against specified claims or losses arising from the work.

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