Gary Ganick, Corporate Risk Manager, Smith Seckman Reid, Nashville, Tenn.

Are Indemnification and Guarantee Clauses Just Empty Promises?

Parties to a construction project—owner, contractor and design professionals—face significant potential risk. For this reason, during contract formation and negotiation, there should be candid discussion on the fair allocation and management of project risks—with risk generally allocated to those in the best position to control it.