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This post was published to at 11:19:45 AM 4/22/2016

Whose interpretation is correct?


In construction, one of the most common problems is regarding interpretation of the contract
documents. If there could be multiple ways of interpreting the contract, then it means that the contract
is ambiguous. In such a situation, the contractor can choose to interpret it fairly and reasonably. Even
though the owner will put forth more logical interpretations.

If the owner forces the contractor to follow its interpretation, then the contractor can claim because it is
a change to the contractor. Usually, this is what happens. The owner has a stronger position and orders.
He does not negotiate. When an owner orders, there is no room for negotiation. If the contractor keeps
on silently accepting the owner’s interpretation, it becomes unbearable at some stage. No one knows
when this stage comes. When it comes, you are in a full-grown dispute.

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