Confessions of a County CPO: “The Clause That Cost Us”

There are two types of people in this world: those who read the indemnity clause and those who call you at 2 a.m. when it goes sideways.

This particular misadventure started with a routine construction contract to retrofit an aging recreation center. The scope was fine. The procurement method was sound. The pricing was competitive. But buried deep in the contract boilerplate, someone — not naming names — decided to strike the standard indemnity clause.

“We don’t need it,” the project manager said. “We’ve worked with this vendor before. Good people. Solid handshake.”

I raised a brow and suggested we reconsider. “That clause isn’t there for the good vendors. It’s there for when things go bad.” The project manager smiled and said, “What could go wrong?”

Three months later, a subcontractor punctured a pressurized water line. In the ceiling. Of a library. No less, during a school field trip.

Books were ruined. Children were screaming. One parent filmed the chaos and posted it with the caption: “County next water feature.” It got 82,000 views in 24 hours.

When we attempted to recover damages, the prime contractor pointed to the signed agreement: “No indemnity. You accepted the risk.”

Our risk management office choked on their coffee.

The county ended up footing the entire $180,000 repair and cleanup bill. Insurance helped — but only partially. When I debriefed with leadership, I referenced the indemnity clause that was cut, and the project manager sheepishly said, “Well... lesson learned.”

Lesson for procurement officials: Even the cleanest contract turns toxic without the proper protections.

Service doesn’t shine bright when your contract leaves you in the dark. True public service in procurement means protecting your agency before the storm — not cleaning up after it.