Indemnity Clause in Contract

ikam

New Member
Jurisdiction
Virginia
I'm a home owner hiring a contractor to do some remodeling inside my house. I live in Virginia. The contract sent by the contractor has this clause (I am the "Owner" in this clause):

"To the fullest extent permitted by law, the Owners shall indemnify, defend and hold harmless the Contractor and its agents, Sub-Contractors and employees, from and against all claims, demands, or liability for injuries or damage arising out of or encountered in connection with this Contract of the prosecution of work hereunder, excepting only such injury or harm as may be caused solely and exclusively by the gross negligence or willful misconduct of the indemnified party. Without limiting the generality of the foregoing, such indemnification shall extend to claims, damages, losses, and expenses attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property, or to penalties imposed on account of the violation of law, regulation or governmental requirement. This provision shall survive the termination of the Contract"

Does this imply I'll need to pay the contractor for any damages/injuries they encounter while working in my home? For example, if they trip and fall, am I responsible to pay them per this clause? Does this clause also mean if they damage my house in any way while working on the project, I cannot hold them responsible for the damages to my house? Is this clause fair to the home owner? If not, how can it be rephrased so that it's fair to both the home owner and the contractor? Thank you for any help!
 
I'm a home owner hiring a contractor to do some remodeling inside my house. I live in Virginia. The contract sent by the contractor has this clause (I am the "Owner" in this clause):

"To the fullest extent permitted by law, the Owners shall indemnify, defend and hold harmless the Contractor and its agents, Sub-Contractors and employees, from and against all claims, demands, or liability for injuries or damage arising out of or encountered in connection with this Contract of the prosecution of work hereunder, excepting only such injury or harm as may be caused solely and exclusively by the gross negligence or willful misconduct of the indemnified party. Without limiting the generality of the foregoing, such indemnification shall extend to claims, damages, losses, and expenses attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property, or to penalties imposed on account of the violation of law, regulation or governmental requirement. This provision shall survive the termination of the Contract"

Does this imply I'll need to pay the contractor for any damages/injuries they encounter while working in my home? For example, if they trip and fall, am I responsible to pay them per this clause? Does this clause also mean if they damage my house in any way while working on the project, I cannot hold them responsible for the damages to my house? Is this clause fair to the home owner? If not, how can it be rephrased so that it's fair to both the home owner and the contractor? Thank you for any help!


If you find the contract verbiage to be onerous DON'T sign it.

Talk to other contractors.

Usually those passages ATTEMPT to do what you suspicion.

However, they aren't bullet proof, but never sign a contract you don't agree with or understand.

It is ALWAYS wise to have ANY contract reviewed by YOUR lawyer.

The $200 to $500 that might cost is well worth it.
 
What I'm telling you should not be considered and is not legal advice, just one person's thoughts on what he is reading. On the surface it seems to be a harsh clause which would make a home owner potentially responsible for injury suffered by a worker even as a result of the worker's negligence. Consider the following: if a clause is not "reciprocal" meaning that it is applied equally to both parties, chances are better that it can be harsh as applied against you. What are they indemnifying you for, e.g. if an employee gets injured on the job as a result of the contractor's negligence and they sue you, the homeowner, and you have to defend a case that is really the contractor's responsibility? Is the contractor liable to indemnify or reimburse you for defending such a case?

Given the amount of money potentially in issue here, it's probably a good idea to invest in an experienced attorney to review the contract. I second the recommendation.
 
Does this imply I'll need to pay the contractor for any damages/injuries they encounter while working in my home?

No. It's not implied. It's stated expressly.

For example, if they trip and fall, am I responsible to pay them per this clause?

Well...most trip/fall situations don't result in injuries. However, what you wrote says that you're on the hook if the contractor is injured, unless the injury results "solely and exclusively [as a result of] the gross negligence or willful misconduct of the" contractor.

Does this clause also mean if they damage my house in any way while working on the project, I cannot hold them responsible for the damages to my house?

No.

Is this clause fair to the home owner?

That's something only you can answer.

If not, how can it be rephrased so that it's fair to both the home owner and the contractor?

Answering this question would require knowing what both you and the contractor subjectively consider to be "fair." It would also constitute the provision of legal advice (see the disclaimer at the bottom of the page).

If you find the contract verbiage to be onerous DON'T sign it.

Talk to other contractors.

my reaction to that proposed contract would be a resounding "GET LOST!"

I concur.
 
Allow me to jump on the bandwagon. I have no idea whether the contractor appreciates the implications of what is written in the contract. But if I had to guess, I'd say he or she does and my reaction would be the same.
 
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