Many Commonwealth contracts contain an indemnity from the supplier to the procuring entity that makes the supplier liable for loss, damage or expenses incurred by the procuring entity as a result of the actions of the supplier or their subcontractors. An example of this type of indemnity is a requirement for the supplier to cover costs incurred for a training program if the supplier cancels that program (eg venue deposits, catering costs, travel costs for participants from interstate). A significant issue is whether the supplier's liability should be capped or limited. Any decision to cap or limit a supplier's liability should be based on a formal risk assessment. This is a complex area of law, and you should seek legal advice if any issues arise in connection with indemnities from the supplier.