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Section X— Secondary Options

Clause X18

Limitation of Liability

Purpose

Each limit to the Contractor's liability applies if a limit is stated in the Contract Data. The Contractor's liability for the Client's indirect or consequential loss, for loss of or damage to the Client's property, and for design Defects not listed on the Defects Certificate is limited to the amount stated in the Contract Data. The Contractor's total liability for all matters, other than excluded matters, is limited to the amount stated in the Contract Data. The Contractor is not liable for a matter unless details are notified to the Contractor before the end of liability date.

Practical Application

Liability is capped at the amounts stated in the Contract Data, subject to the excluded matters.

Common Pitfalls

Excluded matters include amounts payable for loss or damage to the Client's property, delay damages (X7), low performance damages (X17) and the Contractor's share (Options C/D). Claims must be notified before the end of liability date.

Related Clauses

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.