lost profits

Waiver of Consequential Damages: The Clause That Limits Your Exposure to the Owner's Lost Profits

A waiver of consequential damages clause says that neither party can recover consequential damages from the other — lost profits, lost rent, lost opportunity, reputational damage. The clause is in the standard AIA general conditions and most well-drafted custom contracts because without it, a one-month construction delay could trigger owner claims for months of lost revenue that dwarf the contract itself.