Managing Delays Caused by Differing Site Condition

Remedying site conditions that are materially different from those specified in contract documents is a common source of delay for contractors. The objective of this study was to identify factors that would enable construction contractors to manage delays that are caused due to differing site conditions. The Standard Differing Site Conditions clause is a primary risk allocation clause in all federal and most state government construction contracts that provide for adjustment in the contact price. This clause is also incorporated into the Conditions of Contracts for Georgia school projects. Thirty-three schools with differing site condition clause from different parts of Georgia were considered in this study. Delays and their causes, due to differing site conditions, were determined through surveys and personal interviews. The outcome of the study indicated that 70 percent of the delays were due to lack of timely and adequate communication between the parties involved. Twenty percent of delays were attributed to lack of trust between owners and their contractors. Remaining delays of about 10 percent were caused by miscellaneous reasons. Persistent and firm follow up of change order requests of the general contractor was found to be a major remedy for reducing the impact of delays caused by differing site condition. The study concluded that prompt and higher level of communication was also necessary for dealing with delays caused by "changed condition". To remedy the risk associated with differing site conditions the general contractor would normally review durations of all the delay-dependent activities, which resulted in extension of contract completion date.