Scholarly Papers
Apr 21, 2023

Contract Documents Defects: Ensuring Contract Drafters Know What They Want and Say It Clearly

Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 3

Abstract

Construction contract documents describe the scope of the intended work and serve to legally bind the parties to their defined or implied responsibilities, obligations, rights, duties, and liabilities with respect to the executed contract. It is common that contract documents are found to be defective, often leading to change orders, delays, and increased cost, which in turn lead to disagreements and disputes between the parties to the construction contract. Recent literature revealed a set of recommendations for improving the quality of contract documents. These call on project owners to know what they want, describe it very clearly, not assume the other party knows what the owners want, tell them what the owners want, and not change their mind. The objective of this paper is to assess the validity of these guiding principles through a case law review. The methodology involved analyzing 50 disputes that evolved from deficiencies encountered in contract documents. The scrutiny of the adopted cases allowed the mapping of the underlying categories of defects to the literature-encountered theorized principles, thereby verifying their propositions. The study revealed the following six general categories of impacted documents that, when drafted properly and proactively, will help owners and their contract drafters in minimizing defects in their contract documents: (1) drafting of specifications, (2) drafting of drawings, (3) drafting of conditions of contracts, (4) correctness of rendered design, (5) coordination between specifications and drawings, and (6) coordination of several contracts. These findings call on owners and contract drafters to look for ways and means to identify the measures that should be taken to avoid practices that may lead to defective documentation and thus minimize the possibilities of encountering such defects.

Get full access to this article

View all available purchase options and get full access to this article.

Data Availability Statement

All data, models, and code generated or used during the study appear in the published article.

Acknowledgments

The authors would like to acknowledge the generous graduate assistantship funding granted by the Maroun Semaan Faculty of Engineering and Architecture at the American University of Beirut in support of this research.

References

List of Cases

A. S. McCaughan Co. v. Barram, No. 96-1315, 16 FPD 48 (Fed. Cir. 1997).
American and Foreign Ins. Co. v. Bolt, 106 F.3d 155 (6th Cir. 1997).
Beacon Constr. Co. of Mass. V. United States, 314 F.2d 501 (Fed. Cir. 1963).
Blue Bell, Incorporated v. Cassidy, 200 F. Supp. 443 (N.D. Miss. 1961).
Christie v. United States, 237 U.S. 234, 35 S. Ct. 565, 59 L. Ed. 933 (1915).
Co-operative C. Stor, Bldrs., Inc. v. Arcadia Foods, Inc., 291 So. 2d 403 (La. Ct. App. 1974).
DOT v. Bracken Construction Co., 72 Pa. Commonwealth Ct. 620, 457 A.2d 995 (Commw. Ct. 1983).
Dobler v. Malloy, 214 N.W.2d 510 (N.D. 1973).
Driscoll Const. Co., Inc. v. State, 853 A.2d 270, 371 N.J. Super. 304 (Super. Ct. App. Div. 2004).
Edward R. Marden Corporation v. United States, 442 F.2d 364 (Fed. Cir. 1971).
Fortec Constructors v. United States, 760 F.2d 1288 (Fed. Cir. 1985).
Fuchs v. Parsons Construction Co., 111 N.W.2d 727, 172 Neb. 719 (1961).
Galloway Corp. v. S. B. Ballard Construct, 250 Va. 493 (Va. 1995).
Hensel Phelps Const. Co. v. US, 886 F.2d 1296 (Fed. Cir. 1989).
Hills Materials Co. v. Rice, 982 F.2d 514 (Fed. Cir. 1992).
Hitt Contracting, Inc. v. US, No. 07-823 C (Fed. Cl. Sep. 29, 2008).
Hollerbach v. United States, 233 U.S. 165, 34 S. Ct. 553, 58 L. Ed. 898 (1914).
Home Furniture, Inc. v. Brunzell Construction Co., 440 P.2d 398, 84 Nev. 309, 84 Nv 309 (1968).
Interstate Gen. Govt. Contractors v. Stone, 980 F.2d 1433 (Fed. Cir. 1992).
Kansas Turnpike Authority v. Abramson, 275 F.2d 711 (10th Cir. 1960).
Kubby v. Crescent Steel, 466 P.2d 753, 105 Ariz. 459 (1970).
Kurland v. United Pac. Ins. Co., 251 Cal. App. 2d 112, 59 Cal. Rptr. 258 (Ct. App. 1967).
L. Rosenman Corporation v. United States, 390 F.2d 711 (Fed. Cir. 1968).
Lewis v. Anchorage Asphalt Pav. Co., 579 P.2d 532 (Alaska 1978).
MacKnight Flintic Stone Co. v. the Mayor, 160 N.Y. 72 (N.Y. 1899).
Marine Colloids, Inc. v. MD Hardy, Inc., 433 A.2d 402 (Me. 1981).
Mattingly Construction Co., Inc. v. Hartford Underwriters Ins. Co., 999 A.2d 1066, 415 Md. 313 (2010).
Mayville-Portland Sch., etc. v. CL Linfoot, 261 N.W.2d 907 (N.D. 1978).
Metric Constructors, Inc. v. National Aeronautics & Space Administration, 169 F.3d 747 (Fed. Cir. 1999).
Miller v. Guy H. James Const. Co., 653 P.2d 221, 1982 O.K.C.I.V.A.P.P. 34 (Okla. Ct. App. 1982).
Mountain Home Contractors v. United States, 425 F.2d 1260, 192 Ct. Cl. 16 (Ct. Cl. 1970).
Nat. Union Fire Ins. V. CBI Industries, No. D-4353, 907 517 (Tex: Supreme Court 1995).
Newsom v. United States, 335 F.2d 237 (5th Cir. 1964).
P. R. Burke Corp. v. US, 277 F.3d 1346 (Fed. Cir. 2002).
Puget Sound Nat. Bank v. C. B. Lauch Const. Co., 245 P.2d 800, 73 Idaho 68 (1952).
S.O.G. of Arkansas v. United States, 546 F.2d 367 (Fed. Cir. 1976).
Shay v. Aldrich, No. Docket No. 138908, 790 629 (Mich: Supreme Court 2010).
Simpson v. United States, 172 U.S. 372, 43 L. Ed. 482, 19 S. Ct. 212 (1899).
Solis v. Kirkwood Resort Co, No. No. C036987, 114 265 (Cal: Court of Appeal, 3rd Appellate Dist. 2001).
Southern New England Contracting Co. v. State, 165 Conn. 644, 345 A.2d 550, 345 A. 29 (1974).
Space Corporation v. United States, 470 F.2d 536, 200 Ct. Cl. 1 (Ct. Cl. 1972).
States Roofing v. Winter, 587 F.3d 1364 (Fed. Cir. 2009).
Sunbeam Construction Co. v. Fisci, 2 Cal. App. 3d 181, 82 Cal. Rptr. 446 (Ct. App. 1969).
Teufel v. Wienir, 411 P.2d 151, 68 Wash. 2d 31 (1966).
Trustees of First Bap. Ch. v. McElroy, 78 So. 2d 138, 223 Miss. 327 (1955).
United States v. Atlantic Dredging Co., 253 U.S. 1 (1920).
United States v. Seckinger, 397 U.S. 203, 90 S. Ct. 880, 25 L. Ed. 2d 224 (1970).
United States v. Smith, 256 U.S. 11, 65 L. Ed. 808, 41 S. Ct. 413 (1921).
United States v. Spearin, 248 U.S. 132, 39 S. Ct. 59, 63 L. Ed. 166 (1918).
United States v. Turner Const. Co., 819 F.2d 283 (Fed. Cir. 1987).
W. H. Lyman Constr. Co. v. Vil. of Gurnee, 403 N.E.2d 1325, 84 Ill. App. 3d 28, 38 Ill. Dec. 721 (App. Ct. 1980).
White v. Edsall Const. Co., Inc., 296 F.3d 1081 (Fed. Cir. 2002).
Wingate Construction Co. v. United States, 164 Ct. Cl. 131 (1964).

Works Cited

Abdul-Malak, M.-A. U., and J. M. K. Hamie. 2019. “Proposed framework for the rendering of construction contract document interpretations by engineering professionals.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 11 (3): 04519016. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000305.
Ade-Ojo, C., and A. Babalola. 2013. “Cost and time performance of construction projects under due process reform in Nigeria.” Int. J. Eng. Sci. 3 (6): 1–6.
Akintoye, A., and E. Fitzgerald. 2000. “A survey of current cost estimating practices in the UK.” Construct. Manage. Econ. 18 (2): 161–172. https://doi.org/10.1080/014461900370799.
Akintoye, A. S., and M. J. MacLeod. 1997. “Risk analysis and management in construction.” Int. J. Project Manage. 15 (1): 31–38. https://doi.org/10.1016/S0263-7863(96)00035-X.
Alarcón, L. F., and D. A. Mardones. 1998. “Improving the design-construction interface.” In Proc., 6th Annual Meeting of the Int. Group for Lean Construction, 1–12. Guaruja, Brazil: International Group for Lean Construction.
Arain, F. M., L. S. Pheng, and S. A. Assaf. 2006. “Contractors’ views of the potential causes of inconsistencies between design and construction in Saudi Arabia.” J. Perform. Constr. Facil. 20 (1): 74–83. https://doi.org/10.1061/(ASCE)0887-3828(2006)20:1(74).
ARCADIS. 2022. Successfully navigating through turbulent times. Amsterdam, Netherlands: Chamber of Commerce.
Assaf, S., M. A. Hassanain, and A. Abdallah. 2017. “Assessment of deficiencies in design documents for large construction projects.” J. Perform. Constr. Facil. 31 (5): 04017086. https://doi.org/10.1061/(ASCE)CF.1943-5509.0001081.
Assaf, S. A., and S. Al-Hejji. 2006. “Causes of delay in large construction projects.” Int. J. Project Manage. 24 (4): 349–357. https://doi.org/10.1016/j.ijproman.2005.11.010.
Bajaj, D., J. Oluwoye, and D. Lenard. 1997. “An analysis of contractors’ approaches to risk identification in New South Wales, Australia.” Construct. Manage. Econ. 15 (4): 363–369. https://doi.org/10.1080/014461997372917.
Brook, M. 2016. Estimating and tendering for construction work. Abingdon, UK: Routledge.
Burati, J. L., Jr., J. J. Farrington, and W. B. Ledbetter. 1992. “Causes of quality deviations in design and construction.” J. Constr. Eng. Manage. 118 (1): 34–49. https://doi.org/10.1061/(ASCE)0733-9364(1992)118:1(34).
Cheung, S. O., and K. H. Y. Pang. 2012. “Anatomy of construction disputes.” J. Constr. Eng. Manage. 139 (1): 15–23. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000532.
Chua, D. K. H., Y. C. Kog, and P. K. Loh. 1999. “Critical success factors for different project objectives.” J. Constr. Eng. Manage. 125 (3): 142–150. https://doi.org/10.1061/(ASCE)0733-9364(1999)125:3(142).
Cox, I., J. Morris, J. Rogerson, and G. Jared. 1999. “A quantitative study of post contract award design changes in construction.” Construct. Manage. Econ. 17 (4): 427–439. https://doi.org/10.1080/014461999371358.
de Neufville, R., and D. King. 1991. “Risk and need-for-work premiums in contractor bidding.” J. Constr. Eng. Manage. 117 (4): 659–673. https://doi.org/10.1061/(ASCE)0733-9364(1991)117:4(659).
Dosumu, O., G. Idoro, and H. Onukwube. 2017. “Causes of errors in construction contract documents in Southwestern, Nigeria.” J. Constr. Bus. Manage. 1 (2): 11–23. https://doi.org/10.15641/jcbm.1.2.59.
Gavilan, R. M., and L. E. Bernold. 1994. “Source evaluation of solid waste in building construction.” J. Constr. Eng. Manage. 120 (3): 536–552. https://doi.org/10.1061/(ASCE)0733-9364(1994)120:3(536).
Goddard, C., A. Fellner, and R.-A. Ormand. 2011. “Basic principles of contract drafting.” Accessed February 4, 2020. https://www.ulapland.fi/loader.aspx?id=60a15dd5-ebc6-4d06-a730-c363a4cf4327.
Gunduz, M., and V. Karacan. 2009. “Damage to treasury: Abnormally low tenders in public construction works.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 1 (3): 130–136. https://doi.org/10.1061/(ASCE)1943-4162(2009)1:3(130).
Jergeas, G. F., and F. T. Hartman. 1994. “Contractors’ construction-claims avoidance.” J. Constr. Eng. Manage. 120 (3): 553–560. https://doi.org/10.1061/(ASCE)0733-9364(1994)120:3(553).
Lam, P. T. I., M. M. Kumaraswamy, and T. S. T. Ng. 2007. “International treatise on construction specification problems from a legal perspective.” J. Civ. Eng. Educ. 133 (3): 229–237. https://doi.org/10.1061/(ASCE)1052-3928(2007)133:3(229).
Larsen, J. K., G. Q. Shen, S. M. Lindhard, and T. D. Brunoe. 2015. “Factors affecting schedule delay, cost overrun, and quality level in public construction projects.” J. Manage. Eng. 32 (1): 04015032. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000391.
Laryea, S. 2011. “Quality of tender documents: Case studies from the UK.” Construct. Manage. Econ. 29 (3): 275–286. https://doi.org/10.1080/01446193.2010.540019.
Liu, M., and Y. Y. Ling. 2005. “Modeling a contractor’s markup estimation.” J. Constr. Eng. Manage. 131 (4): 391–399. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:4(391).
Long, N. D., S. Ogunlana, T. Quang, and K. C. Lam. 2004. “Large construction projects in developing countries: A case study from Vietnam.” Int. J. Project Manage. 22 (7): 553–561. https://doi.org/10.1016/j.ijproman.2004.03.004.
Loulakis, M. C., and S. J. Santiago. 1997. “Patent versus latent contract ambiguities: Who bears the increased costs of performance?” Civ. Eng. 67 (9): 69.
Love, P., R. Lopez, Y. M. Goh, and P. Davis. 2011a. “Systemic modelling of design error causation in social infrastructure projects.” Procedia Eng. 14: 161–168. https://doi.org/10.1016/j.proeng.2011.07.019.
Love, P. E., D. J. Edwards, S. Han, and Y. M. Goh. 2011b. “Design error reduction: Toward the effective utilization of building information modeling.” Res. Eng. Des. 22 (3): 173–187. https://doi.org/10.1007/s00163-011-0105-x.
Mahamid, I., A. Bruland, and N. Dmaidi. 2011. “Causes of delay in road construction projects.” J. Manage. Eng. 28 (3): 300–310. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000096.
Mansfield, N. R., O. Ugwu, and T. Doran. 1994. “Causes of delay and cost overruns in Nigerian construction projects.” Int. J. Project Manage. 12 (4): 254–260. https://doi.org/10.1016/0263-7863(94)90050-7.
Mehany, M. S. H. M., G. Bashettiyavar, B. Esmaeili, and G. Gad. 2018. “Claims and project performance between traditional and alternative project delivery methods.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 10 (3): 04518017. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000266.
Mohamad, I., and Z. Madon. 2006. “Understanding contract documentation.” In Proc., 6th Asia-Pacific Structural Engineering and Construction Conf. (APSEC 2006). Kuala Lumpur, Malaysia: Asia Pacific Structural Engineering and Construction.
Odeh, A. M., and H. T. Battaineh. 2002. “Causes of construction delay: Traditional contracts.” Int. J. Project Manage. 20 (1): 67–73. https://doi.org/10.1016/S0263-7863(00)00037-5.
Oluwaseun Sunday, D., and A. Olumide Afolarin. 2013. “Causes, effects and remedies of errors in Nigerian construction documents.” Organ. Technol. Manage. Constr. Int. J. 5 (1): 676–686. https://doi.org/10.5592/otmcj.2013.1.4.
Sertyesilisik, B. 2010. “Investigation on particular contractual issues in construction.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 2 (4): 218–227. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000032.
Shash, A. A. 1998. “Bidding practices of subcontractors in Colorado.” J. Constr. Eng. Manage. 124 (3): 219–225. https://doi.org/10.1061/(ASCE)0733-9364(1998)124:3(219).
Smith, G. R., and C. M. Bohn. 1999. “Small to medium contractor contingency and assumption of risk.” J. Constr. Eng. Manage. 125 (2): 101–108. https://doi.org/10.1061/(ASCE)0733-9364(1999)125:2(101).
Smith, R. C. 2013. Estimating and tendering for building work. New York: Routledge.
Thomas, H. R., G. R. Smith, and S. M. Wirsching. 1995. “Understanding defective specifications.” J. Constr. Eng. Manage. 121 (1): 55–65. https://doi.org/10.1061/(ASCE)0733-9364(1995)121:1(55).
von Branconi, C., and C. H. Loch. 2004. “Contracting for major projects: Eight business levers for top management.” Int. J. Project Manage. 22 (2): 119–130. https://doi.org/10.1016/S0263-7863(03)00014-0.
Wilson, M. 2017. “The importance of clear contract terms.Nuts & Bolts Construction Law Blog. Accessed March 12, 2020. https://www.lexology.com/library/detail.aspx?g=1acd609a-ed42-466e-aa61-66bf94cfc075.

Information & Authors

Information

Published In

Go to Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15Issue 3August 2023

History

Received: Jul 19, 2022
Accepted: Jan 10, 2023
Published online: Apr 21, 2023
Published in print: Aug 1, 2023
Discussion open until: Sep 21, 2023

Permissions

Request permissions for this article.

ASCE Technical Topics:

Authors

Affiliations

Mohamed-Asem Uthman Abdul-Malak, M.ASCE https://orcid.org/0000-0003-3382-2257 [email protected]
Professor and Head, Dept. of Construction Engineering, College of Engineering and Technology, Univ. of Doha for Science and Technology, Bld. 9, Al Tarfa, Jelaiah St., Duhail North, P.O. Box 24449, Doha, Qatar; formerly, Professor and Chair, Dept. of Civil and Environmental Engineering, Maroun Semaan Faculty of Engineering and Architecture, American Univ. of Beirut, Bechtel Engineering Bldg., Beirut 1107 2020, Lebanon (corresponding author). ORCID: https://orcid.org/0000-0003-3382-2257. Email: [email protected]; [email protected]
Farah Ezzeddine [email protected]
Formerly, Graduate Student, Dept. of Civil and Environmental Engineering, Maroun Semaan Faculty of Engineering and Architecture, American Univ. of Beirut, Bechtel Engineering Bldg., Beirut 1107 2020, Lebanon. Email: [email protected]

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share