San Francisco Administrative Code § 21.23 Contract Terms – Incidental Damage Waivers; Liability Caps

In any contract for Commodities or Services, the Contracting Officer is hereby authorized, with the approval of the City Attorney, to waive future City rights to incidental and consequential damages arising from the performance of the contract, or to agree to limit damages caused by the contractor's negligence to a specified amount. The factors to be evaluated in determining whether damages should be waived or capped in a particular case shall include but are not limited to:

(a) Whether, in light of insurance and bond requirements, the performance of the contract is likely to create undue risk of damages to the City;

(b) Whether the language proposed in the contract waiving future claims to incidental and consequential damages or limiting the contractor's liability for damages caused by the contractors negligence is standard in the industry to which the contract relates;

(c) The best interests of the City.

(Added by Ord. 156-99, File No. 990743, App. 6/2/99)