Sarah Dyer
Partner
Article
5
Construction disputes often involve questions concerning contractual interpretation. In the latest article in our Back to Basics series, we highlight some of the key principles in this area.
Construction disputes often involve questions concerning contractual interpretation: whether as part of understanding the contractor's scope of work or to establish the proper operation of the agreed provisions.
With the parties inevitably taking opposing views, focus will necessarily turn to how a tribunal would decide the question - if asked. What principles should it adopt and how would it approach the exercise from a practical perspective?
Predicting the outcome of a dispute concerning contractual interpretation will often be uncertain. Such disputes are very fact sensitive and, because of the importance of the relevant background, it is not safe to assume that a clause in one contract will have the same meaning in a different contract. This, together with the fact that tribunals are not in the business of saving parties from bad bargains, makes clear drafting essential.
With the natural emphasis leading up to contract award being to 'get the deal done', there may be an inclination not to properly bottom out tricky provisions. This is a risky business. Even where the terms seem clear during the drafting process, it is sensible to check your draft contracts and consider the following:
This extra time spent pre-contract may well save you significant time and money further down the line.
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