consequential damages defined in construction
consequential damages. Consequential damages are an indirect result of a direct loss. Lost profit, lost rents, and lost business opportunities are examples of consequential damages that could be incurred as a result of a direct physical loss to property. Consequential damages are a troublesome risk for most businesses because of the lack of a ceiling on the amount of the loss.
waiver of consequential damages in its contract with the Sands. Contrac-tual waivers of consequential damages have become widespread throughout the construction industry. Indeed, since 1997, the American Institute of Archi-tects has included a mutual waiver of consequential damages in its standard General Conditions for Construction. Many courts and arbitration panels have dismissed lawsuits without hold-ing a trial based on the presence of a consequential damages waiver. These courts and panels generally ï¬ nd that classiï¬ cation of damages is a legal issue for the courts, and a trial is un-