Limitation of liability clauses in contracts for large-scale international projects

Master's Thesis from the year 2018 in the subject Law - European and International Law, Intellectual Properties, grade: 2,0, University of Applied Sciences Mainz (Wirtschaft), language: English, abstract: Participation in large-scale international projects (also called megaprojects) has a significant impact on multiple international parties, especially in the industrial plant construction sector. On the one hand, the participation of multiple parties can lead to higher levels of technological achievement. On the other, this participation also leads to greater risk and liabilities for parties. Contract management plays an increasingly important role in megaprojects; it is aimed at identifying and limiting risks that are typical to international industrial plant construction contracts and specific to megaprojects. However, to use these contracts optimally, it is essential to have a comprehensive overview of the main issues of liability. Nowadays, 89% of large German companies consider limitation of liability clauses to be highly important. This is why the main objective of this research was to explore knowledge and insight in regard to limitation of liability clauses. The core questions were addressed such as the important types of liability, the main types of limitation of liability clauses and the restrictions of the limitation of liability clauses. The methods applied to collect and analyze the relevant data were systematic approach, key word search, snowball system and discussions with legal experts from similar megaprojects.