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The Differing Site Condition (or changed condition) clause allocates the risk of either unknown or unexpected site conditions in construction contracts. In many contracts, the contractor may have a claim for additional time, money, or both if the actual conditions encountered differ materially from what was either indicated in the contract documents or would not reasonably be expected in the area. Sometimes, however, owners and/or contractors fail to include a differing site condition clause in the construction contract. When the project involves subsurface construction, this failure can lead to negative consequences. The ability to rely on differing site condition clause allows contractors to more aggressively price their work. Consequently, owners benefit from a lower initial price. If the site conditions end up differing materially from what the preconstruction geotechnical information indicates, owners who include a differing site condition clause pay for work actually needed to complete the project. In other words, they get the benefit of their bargain; and if the site conditions do not differ, the owner benefits from the lower price. Absent a differing site condition clause; however, the owner pays for the contractors’ best guess as to what any remedial site work will cost. This session by Zach Jones addresses in detail why both owners and contractors benefit from including a differing site condition clause.
In this session, you will learn:
Who should attend
Zach Jones is a construction attorney in Louisville, Kentucky, with the firm of Stites & Harbison who represents contractors across the country and around the world. Prior to becoming an attorney, Zach was a project engineer and estimator for W.L. Hailey & Company (now Layne, ENR Top 400 #53). Havin... More info