Proportional Reduction for Contributory Liability
The right of a Party to recover costs is reduced if an event for which it was liable contributed to the costs. The reduction is proportional, taking into account each Party's responsibilities.
If both Parties contributed to the same loss or damage, cost recovery is apportioned. The reduction reflects each Party's degree of responsibility for the event.
Apportionment can be contentious. The PM assesses the proportional reduction. The Contractor should maintain evidence to support its position that the contributing event was not its fault.
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