Cian BrennanFounder, Quantum Contract Solutions · Founder

This contract clause turns someone else’s losses into your problem.

Name: This contract clause turns someone else’s losses into your problem.
Uploaded: 2026-01-15T04:00:28+00:00
Duration: 43 s
Channel: Cian Brennan
Description: Cian Dillon Brennan explains why construction contractors should exclude consequential damages clauses from their contracts. These indirect costs like…

15 Jan 2026 · 1 min

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0:43

Cian Dillon Brennan explains why construction contractors should exclude consequential damages clauses from their contracts. These indirect costs like lost profits can be unpredictable and hard to quantify, leaving you liable for someone else's financial losses. Removing the clause protects your business from massive, unforeseeable liabilities.

Chapters

Avoid this clause in your construction contract at all costs. It could be the difference between staying in business and going bankrupt. It's called consequential damages. Here's what it means. Consequential damages, or indirect damages, are losses not directly caused by a breach of contract. 5 reasons to exclude them. They are very high risk. They cover indirect costs like loss of profit to your clients. They are very unpredictable. They're hard to quantify and control. Your client has huge leverage over you if they have this in the contract. Financial stability protects your businesses from huge liabilities if you get rid of it. Legal safety ensures better contract terms. Always negotiate to exclude consequential damages from your contract. This step can save your business from massive financial loss.