Payne Hackenbracht & Sullivan

Permits & Responsibilities

As a result of this provision, the contractor is obligated to obtain all necessary permits and licenses for the project and to comply with any applicable federal, state, or local law, code or regulation. This broadly-worded provision also places the obligation on the contractor for all damages due to the contractor's negligence and for all damages to the work itself until it is accepted by the government.

The government often cites this clause to deny contractor claims when there are disagreements pertaining to sales taxes, sediment control, burning permits, or utility inspections.