The CLC said the ongoing practice leaves contractors facing terms that are “onerous and/or difficult to insure.”

It added: “The CLC believes that onerous amendments make contracts unviable, reduce competition, increase risk and lead to unnecessary legal costs required to review legal liabilities created by the amendments.”

“The CLC’s PII Working Group has identified that too often standard form contract terms are being amended, to include liabilities and obligations that are disproportionately onerous for the nature of the work and of the contracting party and its sub-consultants/sub-contractors, and/or do not fall within the scope of the contracting party’s Professional Indemnity Insurance cover.

“This means that if a client seeks to claim for loss or damage, it cannot be relied upon that it will be settled by the PII insurers, and the consultant/contractor potentially faces financial ruin, and the client left with a claim that cannot be recovered. This is not in the best interest of any party.”

The CLC is now calling for contracts to start with unamended templates with any proposed changes clearly highlighted.

Samantha Peat, Chair of the CLC PII Working Group said: “A sensible approach will simplify risk allocation, give clarity to the project team and their PII providers, and address the concerns for which the CLC PII Working Group was originally formed, namely, to address concerns about cost and efficacy of Professional Indemnity Insurance in construction.”