Interpretation and Requirements of Contract Specifications

Several contract problem areas frequently responsible for claims and change order situations include contract interpretation, defective specifications, duty to seek clarification, duty to inform, duty to proceed, and inspection and duty to inspect. This chapter reviews various contract interpretation dispute situations and describes some methods used to settle them. Over the years, a set of rules has developed to assist in the interpretation of construction contracts. The Contract Appeals Board and various courts use these rules as guidelines for making sound, consistent judgments on contract interpretation problems. The existing body of law dealing with defective specifications originates in the landmark case of U.S. v. Spearin. This decision established the precedent that where the government issues detailed specifications, the government implies a warranty that the finished product will perform as required. The duty to proceed with work is usually obligatory for contractors and subcontractors.