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2 NCHRP LRD 88 CONTENTS Introduction, 3 I. Understanding Consequential Damages, 3 A. What Are Consequential Damages?, 3 B. Mitigating the Risk of Consequential Damages Awards rough Consequential Damages Provisions, 6 C. Legal Considerations Bearing on Consequential Damages Provisions, 9 II. Consequential Damages Clauses and Draing Issues, 11 A. Bene ts of Including Consequential Damages Clauses, 11 B. Challenges of Including Consequential Damages Clauses, 11 C. Considerations When Draing Consequential Damages Clauses, 12 III. Consequential Damages Clauses in Practice, 13 A. Examples of Consequential Damages Provisions in DOT Contracts, 13 B. Trends in Consequential Damages Clauses, 14 IV. Conclusions and Future Considerations, 16 Appendix A: Comparison of Consequential Damages Provisions, 17 Appendix B: Terms from Consequential Damages Provisions, 20
