GT & MC designed and built an oil storage tank with a floating roof guaranteed to withstand 125 mph winds and 10 inches of rain in 24 hours. During Hurricane Alicia, the roof failed and oil spilled even though wind and rain stayed within the design limits. The court ruled that while the contract limited damages for workmanship defects to repair or replacement, it did not limit damages for breaking the express warranty about design performance, so the owner could recover full consequential damages including lost oil.
Damage limitation clauses that cap repairs and replacements do NOT automatically protect you from liability for breach of express warranties about design specifications or performance guarantees.
If your contract includes specific performance guarantees (like wind speed ratings or capacity limits), those warranties are treated separately from general workmanship warranties and may not be subject to damage caps.