Managing Unforeseen Site Conditions

Abstract

Owners often attempt to use construction contract language to apportion responsibility for unforeseen site conditions among themselves, contractors, and designers. The legal merits and limitations of alternate contract clauses and contract forms have received considerable attention in the literature. Here, using the data from several recent studies, it is shown that the actual contract language used is largely irrelevant to the actual costs borne by owners and contractors. More importantly, the management techniques used determine the ultimate cost to all participants. Two management techniques particularly relevant to unforeseen site conditions are the use of interpretive reports and the early resolution of claims. These techniques, their effectiveness, and the overall limitations of legalistic approaches to the management of unforeseen site conditions are discussed in detail.