Rescinded [2022-05-13] - Policy on Decision Making in Limiting Contractor Liability in Crown Procurement Contracts

Long description for image: Annex 5 - Decision making with respect to limitation of liability (LOL) - Decision Tree

The decision tree for decision making with respect to the limitation of liability (LOL) begins with the question: is this a Crown contract for goods, services or construction covered by the Government Contract Regulations and Policy?

If the answer is no – the Limitation of Liability (LOL) policy does not apply.

If the answer is yes, the next step is to identify which Model the goods, services or construction fall under.

If Model 1: Standard Goods, Services and Construction commonly available in the marketplace (see note 1 in Annex 10), the following question must be asked: are the liability provisions straight forward? (Silence, standard indemnification of the Crown or commodity groupings). If yes, go to Annex 6, Model 1. If no, ask is the procurement the subject of predetermined terms? (e.g. government to government arrangement or technical or intellectual property reasons?). If yes, go to Annex 8, Model 3.

If Model 2: Complex Development Products, Services and Construction Contracts (see note 2 in Annex 10) ask: Is the procurement the subject of predetermined terms? (e.g., government to government arrangement or technical or intellectual property reasons?) If yes, go to Annex 8 Model 3. If no, got to Annex 7, Model 2.

If Model 3: Limited Scope for Negotiating Liability provisions, Government to Government Agreements; No other viable alternative to serve a program, go to Annex 8, Model 3.

If Model 4: Highly specialized services contracts in support of the Government's responsibilities for the health, safety and economic well-being of Canadians (see note 4 in Annex 10) go to Annex 9, Model 4.

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