Contracts & ExecutionQuestion 883 of 1605
An 'indemnification' (hold harmless) clause in a construction contract generally requires one party to:
a.Compensate or protect the other party against certain specified losses, claims, or liabilities
b.Extend the completion date automatically
c.Perform the other party's work for free
d.Waive the right to be paid
Explanation
An indemnification or hold-harmless clause shifts risk by requiring one party (the indemnitor) to reimburse or defend the other (the indemnitee) against specified losses, claims, damages, or liabilities, often those arising from the indemnitor's work or negligence. Such clauses are subject to statutory limits in some contexts. They do not require free performance of another's work, a waiver of payment rights, or an automatic schedule extension; their function is allocating liability risk.
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