Georgia Tech Procurement Assistance Center

  • Home
  • About Us
  • Training
    • Class Registration
    • On-demand Training
    • GTPAC COVID-19 Resource Page
    • Cybersecurity Video
    • Veterans Verification Video
    • GTPAC Community
    • Other Training Audio & Video
  • Useful Links
  • Team Directory
    • Albany Counselor
    • Athens Counselor
    • Atlanta Counselors
    • Augusta Counselor
    • Carrollton Counselor
    • Columbus Counselor
    • Gainesville Counselor
    • Savannah Counselor
    • Warner Robins Counselor
  • Directions
    • Athens
    • Atlanta – Training Facility
    • Atlanta – Office
    • Albany
    • Augusta
    • Carrollton
    • Columbus
    • Gainesville
    • Savannah
    • Warner Robins
  • COVID-19
  • New Client Application
  • Contact Us

5 of the most commonly misinterpreted terms in construction contracts

October 18, 2016 By Andrew Smith

People are fallible, and misunderstandings are a part of life. Construction work is no exception.

hardhatHowever, when it comes to construction contracts, time and money are at stake.  A lack of legal background is, of course, one of the primary drivers behind misinterpretations, but there’s also the fact that many contractors think they’ve seen and know everything based on experience.

“Most construction contractors follow custom and standard practice in the industry, or what they’ve always done in the past,” said Chicago attorney Matthew Horn, a long-time construction law attorney and founder of Legal Services Link. “But when something goes wrong … that’s when you get into litigation.” Horn said that it doesn’t even have to be a “newbie” in the construction business who gets it wrong. “It’s not unusual for (experienced) parties to a construction contract not to fully understand what it says,” he said.

Attorney Ken Perry, with Perry & Aronin in New York, said the degree to which contractors should worry about misinterpreting the terms in a contract often varies depending on how well they know the other party. He said it’s always smart to scrutinize a contract no matter the source, but he added that the odds of a positive outcome in the event of a misunderstanding are always higher when doing business with a trusted partner. “Relationships are the most important consideration,” he said. “Know who you’re dealing with.”

Attorney Daryl Williams, with Baird Williams & Greer in Phoenix, said, “There are some people who can work with others on a handshake, and that is the best type of relationship, but a contract with a new party … who will not consent to simple things — or demands extraordinary things — means you are in trouble.” Williams said contractors, as well as other parties, enter into contracts for the protection they provide, so contractors need to pay close attention to any “form contract” from the other party. “You can count on the fact that the form produced by the other side is slanted it its favor,” he said.

Keep reading this article to see some of the most commonly misinterpreted clauses, phrases and terminology in construction contracts: http://www.constructiondive.com/news/the-dotted-line-5-of-the-most-commonly-misinterpreted-terms-in-constructio/427486/

Filed Under: Contracting Tips Tagged With: construction, contract clauses, terminology, terms and conditions

Recent Posts

  • DoD publishes long awaited interim rule on CMMC
  • GSA Region 4 OSDBU hosting small business webinar
  • GTPAC launches COVID-19 resource page
  • GDEcD seeks GA Manufacturers and Distributors that can help with critical health care supply needs related to COVID-19
  • Georgia DOAS to hold 4th Annual Georgia Procurement Conference April 21-23, 2020

Popular Topics

8(a) abuse Army bid protest budget budget cuts certification construction contract awards contracting opportunities cybersecurity DoD DOJ False Claims Act FAR federal contracting federal contracts fraud GAO Georgia Tech government contracting government contract training government trends GSA GSA Schedule GTPAC HUBZone innovation IT Justice Dept. marketing NDAA OMB SBA SDVOSB set-aside small business small business goals spending subcontracting technology VA veteran owned business VOSB wosb

Contracting News

DoD publishes long awaited interim rule on CMMC

Small business subcontracting for cloud computing gets easier

Long awaited changes to WOSB/EDWOSB regulations expected this summer

The CMMC has arrived: DoD publishes version 1.0 of its new cybersecurity framework

GSA keeping ‘on track’ with schedule consolidation

Read More

Contracting Tips

A guide to labor and employment obligations for federal contractors

Who pays for CMMC certification?

Other transaction agreements: Where does an unsuccessful bidder go?

Knowledge is power, if you know how to use it

EAJA provides relief to construction contractor for government’s bad actions

Read More

GTPAC News

GSA Region 4 OSDBU hosting small business webinar

GTPAC launches COVID-19 resource page

GDEcD seeks GA Manufacturers and Distributors that can help with critical health care supply needs related to COVID-19

Georgia DOAS to hold 4th Annual Georgia Procurement Conference April 21-23, 2020

MICC Fort Stewart hosting acquisition forecast open house on Thursday, Feb. 6, 2020

Read More

Georgia Tech News

Dr. Abdallah testifies on U.S. competitiveness, research, STEM pipeline at Congressional hearing

Georgia Tech’s Technology Square Phase III to include George Tower

Student surprises his teacher with Georgia Tech acceptance news

Georgia Tech Applied Research will support DHS information safeguarding effort

$25 million project will advance DNA-based archival data storage

Read More

  • SAM.gov registration is free, and help with SAM is free, too
APTAC RSS Twitter GTPAC - 30th Year of Service

Copyright © 2021 · Georgia Tech - Enterprise Innovation Institute