Contractor Liability For Injury to Persons and Damage to Property in FIDIC Red Book Contracts

Clause 19.2.4 of the FIDIC Red Book (2017) states that the Contractor shall be liable for death or injury to persons and damage to property caused by its breach of contract. This means that the Contractor is liable for any losses or damages caused by its failure to comply with the terms of the contract, including its obligations to perform the Works with reasonable skill and care, to use suitable materials, and to comply with all relevant laws and regulations.

Some examples of breaches of contract that could give rise to liability under Clause 19.2.4 include:

• The Contractor fails to properly supervise its workers, resulting in a worker being injured.
• The Contractor uses defective materials in the construction of the Works, resulting in the Works being damaged.
• The Contractor fails to take adequate safety precautions, resulting in a third party being injured or their property being damaged.
• The Contractor fails to comply with the Engineer's instructions, resulting in the Works being defective.

The Contractor's liability under Clause 19.2.4 is not limited to losses or damages caused by its own negligence. The Contractor is also liable for losses or damages caused by the negligence of its subcontractors, employees, or agents.

It is important to note that the Contractor's liability under Clause 19.2.4 is subject to certain exceptions. For example, the Contractor is not liable for losses or damages caused by the Employer's own negligence or by force majeure events.

The Contractor's liability under Clause 19.2.4 is typically covered by its liability insurance. However, it is important for the Contractor to carefully review its insurance policy to ensure that it provides adequate coverage.