The hold harmless agreement has to be constructed in specific terms since the use and placement of terminology forms the core of the utility of the document. Thus it must make the following issues lucidly clear to the parties:
1. The agreement legally allows the parties to overlook damages and expenses or claims based on these.
2. The agreement lays down an authorised solution of all disputes originating from a business transaction or programme.
3. The agreement clauses are not fixed and may vary according to the type of the jurisdiction under which it works.
The three main types of the agreement, simply categorised into the Broad Form, Intermediate Form and Limited Form, are recommended for use to defend the subcontractor’s laxity. The basic utilization of these forms is given in the following: