What is a net contribution clause?
A net contribution clause seeks to limit the proportion of any
loss or damage payable to the negligent party's "fair
share". Such clauses are now common in collateral warranties
and are being requested more often in consultants'
appointments.
In the construction world, if there is a loss then it is likely
that there is more than one party who can be blamed for that loss,
for example, two or more consultants, the architect and engineer,
may have both contributed to a defective design, or a defect may be
partly attributable to defective design and partly attributable to
defective workmanship and so is the fault of the contractor and the
architect. Each party who has been involved in causing the loss has
joint and several liability and is liable for the entire loss,
regardless of their share of blame. So, for example, a defect might
be 90% attributable to defective workmanship and 10% attributable
to defective design, but the
