Unlike most movies about release agreements, a contract liability waiver form isn’t a way to stab your contractor in the back. It’s also not a way to get away with subpar project execution. Instead, it’s an agreement that helps all the parties agree on the liabilities they are responsible for during the projects.

Let’s look at why you need a contractor liability form and how to create one with Formplus.

Understanding Contractor Liability Waiver Forms

There are two parties in the agreement, the releasor, and releasee; the releasor gives up their right to sue, while the releasee is the one that’s protected by the agreement.

For contractors, this form ensures you don’t have to pay for damages done to the property during the project. For example, if you’re working on a renovation project and you have to make structural changes, the client cannot sue you for property damage unless it’s outside the area of renovation.

As a client, the form ensures contractors cannot sue you for machine damage or accidents during the project. In summary, a waiver form is an agreement that allows the releasor to protect themselves against legal claims that may arise during or after a project. However, signing the waiver does not provide room for malicious practices; if there are deliberate damages, the waiver will not cover it. 

Key Components of Liability Waiver Forms

• Identification of the Parties Involved (Contractor and Client): This ensures that the waiver is legally enforceable between the parties by clearly stating who is the releasee and the releasor. This includes the full legal name and address of both the contractor and the client.
• Description of the Project or Work Being Performed: This states the particular project the release covers, project duration, the site, and specific tasks that may incur liability.
• Specific Liabilities Being Waived: this includes all the risks and damages the client or contractor is waiving.
• Acknowledgment of Risks Involved: This ensures the releasor is agreeing to the waiver with a full understanding of the potential risks associated with the project. It ensures the client or contractor made an informed decision to proceed, despite the risks.
• Signature and Date: This is the evidence that both parties understand the risks associated with the project and the terms of the waiver.

Purpose of a Contractor Liability Waiver Form

Here’s why you need a liability release form:

• Protection for Contractors: As a contractor, the liability waivers ensure you’re not held responsible for damages you couldn’t have prevented. For example, you can’t held liable for the cost of electric junctions melting because of the poor wiring installed by a previous contractor.
• Protection for Clients: This ensures that you are not held responsible for unforeseen damages to the contractor and their equipment while working on your project. It also allows you to clarify your expectations and the potential risks associated with the project.

Requirements for a Contractor Liability Waiver Form

What should your liability waiver form include:

• Legal Requirements: There are different legal requirements for liability releases depending on the jurisdiction. So, ensure the form is compliant with the local laws of the location you are in and it meets all the language requirements.
• Essential Elements of the Form: The form must clearly state the parties involved in the waiver agreement and indicate the specific risks being waived and the conditions where the party has to indemnify the other person. Your form should also be signed and dated so it’s legally binding.

Creating a Contractor Liability Waiver Form

Here’s a step-by-step guide to creating your contractor liability waiver form:

• Go to the Free Contractor Liability Waiver Form Template
• Edit the form’s questions to fit your waiver terms
• Customize the form’s look and feel by changing its theme, color, or font. You can also add a background image.
• Add instructions on the intro page to guide participants through the survey.
• Preview and test the form to ensure it is mobile-responsive.
• Share the form with the client or contractor via email, QR code, or a direct link.
• Collect and analyze the response.

Common Pitfalls to Avoid When Designing Release of Liability Form

• Ambiguous Language:  The goal of your waiver is to ensure all parties know and agree on what they are responsible for during and after the project. So, there’s absolutely no need for vague language that could make the agreement unclear. If the waivers are too broad, they can become unenforceable.
• Ignoring Local Laws: Failing to comply with local laws can render the waiver invalid. Don’t use a generic template, find out the specific laws guiding liability waiver in your location and ensure your waiver form reflects that. You could also consult a legal counsel to ensure you follow relevant laws and identify any loopholes to prevent future disputes.
• Not updating the form: Forms should be updated to reflect changes in laws or scope of work.
• Not Finalizing the Agreement Before Commencing the Project: Your waiver is only valid if signed before the work begins. You can’t create a waiver for a project that’s already completed, so you have no legal stand or indemnity against risks associated with the project.

Sample Contractor Liability Waiver Form Template

The Formplus contractor liability waiver form template is a customizable and downloadable template that allows you to amicably split responsibility for project risk between you and the other party. It has all the questions you need to agree with the releasor and you can customize with new questions to fit your local laws and project needs..

Safeguard yourself against legal risks and potential losses with this template.

Tips for Customizing Your Liability Release Form

• Add specific risks related to the project (e.g., asbestos removal, heavy equipment operation).
• Include clauses related to insurance coverage. 
• Add a section for changes in the scope of work.
• Tailor the language to match the specific industry and project, e.g: 
  • For a roofing project, add risks related to falls and weather damage.
  • For an electrical project, add risks related to electrical shock and fire.
  • If the work is being done in an old building, add a section regarding the discovery of hazardous materials.

Conclusion

A contractor liability waiver form safeguards the client and/or the contractor from future legal disputes. It clarifies the risks you will assume and what the other party will be responsible for.

We hope this guide helps you eliminate potential landmines in your projects. Here’s a free template to get you started.