The document discusses approaches to dealing with consequential damages in construction contracts. It notes that consequential damages are difficult to recover as the plaintiff must prove they were reasonably foreseeable. The American Institute of Architects' mutual waiver of consequential damages is discussed, but it is noted that waivers simply shift disputes rather than resolving them. Liquidated damages are presented as a potential alternative that provides compensation to both parties without the need for extensive proof of damages. The document also suggests both parties identify and allocate risks of consequential damages upfront during contract drafting to avoid later disputes.