Contract ambiguities are a common source of construction litigation. When the language used in a contract leaves too much open to interpretation, it can be read or understood in more than one way. In construction contracts, this is often a recipe for disaster.
On paper, the language may look acceptable. However, on the job site, those vague terms can cause disagreements about who was supposed to do what, when and at whose cost.
Common clauses that trigger disputes
Construction projects involve multiple parties operating under tight timelines and budgets. When contract language is unclear, each party tends to interpret it in the way that suits them or best protects their interests. Some of the provisions that are especially prone to ambiguity include:
- Scope of work clauses that rely on general descriptions instead of specific deliverables
- Payment provisions that fail to clearly define triggers or timing
- Delay clauses that are silent or unclear about excusable delays
- Risk allocation language for defects, weather of third-party interference
When these clauses are not carefully drafted, disputes may be inevitable, potentially leading to costly lawsuits.
How courts handle ambiguous contracts
When contract language is unclear, courts may look beyond the written terms to determine intent. This can include prior negotiations, emails, industry costumes and the parties’ conduct before and after signing the contract. While this can help clarify issues, it also increases litigation costs and uncertainty for the parties involved.
Minimizing the risk of unnecessary disputes
Clear and precise agreements, contracts and legal documents can go a long way in avoiding construction disputes. The language used should be detailed and specific so all parties can understand their roles and expectations. Additionally, including provisions for handling unexpected changes or disagreements can help address any issues before they escalate.
Reaching out for professional legal guidance during the drafting and review of construction contracts can provide a solid foundation for a successful project and help ensure that all clauses are clear, enforceable and tailored to the project’s specific needs.
