Resolving Contract Disputes Based on Misrepresentations

Abstract

This paper describes in a clear and understandable way the primary rules of law that are applied to construction contract disputes involving the misrepresentation of concealed or subsurface conditions. The rules are based on the judicial inquiries derived from more than 45 appellate court decisions. The rules are presented in the form of questions to be asked by contractors and contract administrators. The application of these questions should result in a correct determination of the dispute. The questions are organized in an easy‐to‐understand flow chart. The roles of the soil report and site visit and disclaimers clauses are also explained. The rules were tested using another 10 case decisions. The results show considerable consistency in the law and that the outcome is entirely dependent on the facts.