The Differing Site Conditions Clause Part 1
Disputes over the specifics of a contract happen every day in the construction industry. One dispute construction professionals may find themselves involved in is unexpected interruptions due to unanticipated site conditions. These unexpected site conditions often lead to costly delays. As Florida construction lawyers, we advise you to hire an expert attorney to draft your contracts before embarking upon a new project. Doing so can help protect your business from the risk of expensive disputes. Visit Part 2 for the conclusion of the article.
Differing Site Conditions (DSC) Clause?
If a contractor discovers that after signing a contract the construction site conditions are different than expected, the DSC clause helps to alleviate the situation. The key is drafting a contract with the clause beforehand. Under section 36.5, the Federal Acquisition Regulation (FAR) suggests clauses that can be added into contracts and solicitations. The DSC clause, in particular, is listed under 52.236-2.
An example of the DSC clause in action occurred in Metcalf Construction v. The United States Navy back in 2011. Although the United States Court of Federal Claims ruled in the Navy’s favor initially, after an appeal the court determined that the Navy was in violation of the Federal Acquisition Regulation clause, FAR 52.236-2(b), which governs differing site conditions. Are you covered in the event of an unexpected site issue? We highly recommend the assistance of a legal attorney to assist you in a thorough contract review.
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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.