ABSTRACT
One of the primary functions of a construction contract is to allocate certain risks to one or other of the parties. This may be done by providing that one party (X) shall be liable to the other (Y) if a particular kind of loss or damage occurs, thus placing the risk of that loss or damage on X. It occurs equally under a provision that X shall not be liable to Y for a particular kind of loss, since this effectively places the risk of that kind of loss on Y.
