A crane operated by Derr Construction fell into a hidden underground cavity on a Houston convention center project, causing significant damage. Derr sued the general contractor and project owner for negligence and breach of contract, seeking damages beyond insurance coverage. The court enforced a broad indemnity clause in Derr's subcontract that required Derr to release and indemnify the contractor and owner, barring all claims even though Derr had negotiated modifications to the indemnity language. This case shows that even negotiated changes to indemnity clauses may not protect you if the overall release and indemnity language remains broad.
Broad indemnity and release clauses in your subcontract can bar you from suing the general contractor or owner for their negligence, even if you negotiated modifications to specific indemnity language.
Negotiating changes to an indemnity clause does not necessarily eliminate the clause's enforceability—courts will look at the overall language and intent of the entire provision.