construction engineering 380 n.
Skip this Video
Loading SlideShow in 5 Seconds..
Construction Engineering 380 PowerPoint Presentation
Download Presentation
Construction Engineering 380

Loading in 2 Seconds...

play fullscreen
1 / 10

Construction Engineering 380 - PowerPoint PPT Presentation

  • Uploaded on

Construction Engineering 380. Contract Interpretation. Contract Ambiguity. Legal requirements Substantial completion (not strict) Law controls completion, not contract language Must prove causation to collect residual damages (high burden of proof)

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

Construction Engineering 380

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
construction engineering 380

Construction Engineering 380

Contract Interpretation

contract ambiguity
Contract Ambiguity
  • Legal requirements
    • Substantial completion (not strict)
    • Law controls completion, not contract language
    • Must prove causation to collect residual damages (high burden of proof)
    • Contractor not liable for objectively impossible work specified (use 3rd party standard)
    • Contractor not liable for practically impossible or commercially senseless work specified (use 3rd party standard, must be triggered by an altering event)
contract ambiguity1
Contract Ambiguity
  • Shop Drawings
    • Owner/designer approval does not relieve contractor/supplier of responsibility
    • Contractor must warn owner if design defect is open, obvious, and apparent
    • Waiver- knowingly relinquishing a right (proved by evidence of conduct, not writing)
    • Acceptance- owner can accept work with knowledge of obvious defect
contract ambiguity2
Contract Ambiguity
  • Onerous or exculpatory clauses- contract language that nullifies a fundamental legal right or violated public policy
contract ambiguity3
Contract Ambiguity
  • Scope of work should be clear in the plans and specifications to aid contract interpretation and reduce ambiguity
  • Interpretation of scope involves determination if contract is ambiguous, then application of various rules to determine scope interpretation
contract ambiguity4
Contract Ambiguity
  • Ambiguous contract
    • Two reasonable interpretations
    • Only examine documentary evidence
    • Must understand the claims for determination
    • Absurd interpretations disallowed
    • Onerous, exculpatory, and unconscionable interpretations are disallowed
contract ambiguity5
Contract Ambiguity
  • Application of rules
    • Parol evidence- outside the contract (letters, memos, phone logs, meeting minutes- must be in writing)
    • Patent ambiguity- resolve in favor of drafting party
    • Custom and usage- must be introduced through expert testimony
contract ambiguity6
Contract Ambiguity
  • Course of dealing- prior behaviors between the parties
  • Ordinary meaning- special definitions of words not allowed unless spelled out
  • Implied terms- some work is implied as necessary for completion (used carefully)
  • Whole argument- must follow the spirit of the entire agreement
contract ambiguity7
Contract Ambiguity
  • Clear expression of intent- drafter must make intent obvious or ruling will go to non-drafting party (contra proferentem)
  • Clerical error- clerical errors are ignored unless materially relied upon by non-drafting party
contract ambiguity8
Contract Ambiguity
  • Order of precedence- conflicting provisions are common. Preference given to:
    • Special over general
    • Handwritten over typewritten
    • Typewritten over pre-printed
    • Words over figures