BALI campaigns to cap liability in grounds maintenance and landscaping contracts

In an industry where margins are tight and risks are carefully managed, grounds maintenance and landscaping contractors across the UK increasingly find themselves exposed to disproportionate contractual liability. There is a growing trend of uncapped liability clauses in client contracts, posing a threat to businesses of all sizes but particularly the small and medium-sized enterprises (SMEs) which form the backbone of our sector. 

Unlike professional services providers such as legal or accounting firms, where liability caps are standard practice, grounds maintenance and landscaping contractors are routinely expected to shoulder unlimited financial responsibility should anything go wrong. This imbalance has gone unchallenged for too long.

"What we're seeing is risk being pushed down the contracting chain to those least able to bear it,"

says Ian Ludgate, BALI's Technical Manager.

"A contractor might be paid just a few thousand pounds for maintaining a site yet face potentially millions in liability exposure." 

The issue is particularly acute in public sector contracts and those with large facilities management companies, where standard terms often include not just uncapped liability but also responsibility for indirect and consequential losses. 
For smaller operators, this creates an impossible situation: refuse the terms and lose valuable business or accept them and operate with a sword of Damocles hanging overhead. Many contractors do not fully appreciate the extent of the risk they are taking on or feel powerless to negotiate better terms. 

BALI is taking action to address this imbalance and support members. We are developing resources to help members negotiate fairer contracts, including template letters and guidance on reasonable liability limits. We will also be engaging directly with major clients and procurement bodies to advocate for industry-wide change. 

The goal is not to avoid responsibility – our members take their professional obligations seriously – but to ensure that risk is allocated proportionately and that contracts reflect commercial reality.
 
Members experiencing challenges with unfair liability terms are encouraged to contact BALI for support and to make use of our forthcoming negotiation resources.