Review liability caps and risk wording in your design contracts

For architecture and engineering businesses, a liability clause can affect far more than one isolated dispute point. It can shape exposure for design errors, delays, reliance on third-party information, consultant involvement, and claims that arise long after work is delivered. If the clause is too broad, too narrow or inconsistent with the rest of the contract, it may not support the commercial position you thought you had. The practical working model can be just as important as the contract wording, which is why a review should look at the clause in context.

We usually look at whether the liability cap is clear, whether exclusions and carve-outs are drafted consistently, and whether related clauses such as indemnities, warranties, fitness-for-purpose wording or consultant responsibility undermine the intended limit. In design contracts, we also consider practical project risks such as staged deliverables, reliance on surveys or client instructions, and whether multiple parties contribute to the final outcome. A clause that looks acceptable in isolation can still create problems if the surrounding terms pull risk back onto your firm in another way.

Sometimes a standard starting point is workable, but design projects often vary too much for one clause to fit every engagement well. The right approach depends on the services being provided, the project size, whether specialist consultants are involved, what assumptions your work relies on, and how responsibility is split across the project team. A clause that suits a low-risk advisory engagement may be a poor fit for a multi-stage design project with external dependencies. We review whether your wording matches the commercial reality of the work you are taking on.

We look beyond the cap figure itself. A liability limit can be weakened or reshaped by other parts of the contract, including indemnities, exclusions, standard of care wording, insurance references, reliance clauses, and obligations that continue after completion. For design firms, those surrounding provisions often matter just as much as the headline cap. The review is intended to show how the clause operates as part of the whole contract, not just whether one number appears commercially acceptable on its face.

The fixed-fee covers a legal review of the limitation of liability wording and related contract context you provide, together with practical recommendations on issues we identify. Depending on the matter, that may include suggested drafting changes or comments on how the clause interacts with indemnities, service scope or consultant arrangements. It does not include tax advice, ongoing representation, dispute management, or full contract negotiations with the other side. If you need broader drafting or negotiation support after the review, that can be scoped separately.

Submit an enquiry on this page or click 'Get started'. One of our legal consultants will review it within 1 business day and get in touch to understand what you need.

Your consultant will then email you a fixed-fee quote setting out the cost, scope and timing. If you're happy with it, you can accept the quote and sign our engagement letter online.

Once you've accepted, one of our Australian-qualified lawyers will work with you to complete your project. They'll contact you by email or phone if they need anything.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Limitation Of Liability Review For Design Firms service, pricing starts from $900.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We work online, so we can help wherever you are in New Zealand. Our team works remotely, mainly from Australia.

Your work is done by our Australian-qualified lawyers, who hold Australian practising certificates and specialise in business law. None of them are New Zealand lawyers or hold a New Zealand practising certificate.

Sprintlaw NZ Limited is a legal consultancy, not a law firm, and is not regulated by the New Zealand Law Society. We don't act in court or tribunal matters, conveyancing (including leases and business sales) or other reserved areas of work. Communications with Sprintlaw are unlikely to be protected by legal professional privilege. We still keep everything confidential under our engagement letter.