The Patriot Court stated that the law prohibited a compensation agreement, i.e. a party agreed to pay damages to a second party, the second part of which is held liable to a third party. However, the anti-compensation law did not affect the provision that excluded the contractor`s right to recover from the architect. Thus, the contracting parties to the construction are always free, at least in the opinion of a court, to include limitations of liability. Other statutes, which specifically concern public procurement, contain the same prohibitions. This is called z.B la. Rev. Stat. P. 38:2195, that public bodies are prohibited from taking responsibility for damages caused by others with whom the public body is required to enter into contracts.
Conversely, La goes out. Rev. Stat. P. 38:2216 (G) any compensation agreement requiring a contractor to protect the public person from third-party claims caused by the public person. In other words, Louisiana`s anti-compensation law prohibits general and interim compensation provisions. For example, a subcontractor cannot be required to exempt the general contractor from negligence or intentional misconduct by the general contractor. Similarly, the law does not allow compensation for negligence or negligence of a third party to which the donor of an exemption is not entitled. Louisiana Revised Status 9:2780.1 (B) sets certain limits on the extent to which one party can compensate another party, and the result makes Louisiana a kind of “weak state of impairment.” Contractors, subcontractors and all players in the construction industry have heard the concept of compensation.
It is also important that every construction specialist understands what this means and the pros and cons that come with it. If you decide to use ConsensusDOCS “Standard form of agreement Between Contractor and Subcontractor,” ConsensusDocs 750, you will also be covered by a compensation clause in accordance with sections 9.1.1 and 9.1.2. An intermediate form of agreement requires compensation to cover all the risks associated with it, but not if the risk is the responsibility of compensation.