Contractors: To Waive Or Not To Waive Consequential Damages?

A waiver of consequential damages is contained in many construction contracts. The American Institute of Architects, for example, has included a mutual waiver of consequential damages between the owner and contractor since at least 1997 and continues to do so today. (See, e.g., AIA A201-2007, at § 15.1.6). But what does such a waiver mean and is it a good thing for contractors to give up a right to recover consequential damages?