Differing Site Conditions: Clarifying Misunderstandings to Reduce Costly Litigation

Abstract

The differing site conditions (DSC) clause, commonly known as changed conditions, is one of the most frequently litigated clauses in construction contracts. It is well established that the purpose of a DSC clause is to shift the risk of unknown physical conditions to the owner and reduce the construction cost. Parties to DSC disputes not understanding what must be substantiated in a case can lead to a plethora of costly and time-consuming proceedings. Additionally, the misinterpretation of the roles of soil reports, disclaimers, and site visit requirements ultimately produce the same result. The study will provide a guideline of the essentials required to win a DSC claim and a clarification of the misconceptions associated with the role of the contract documents, as well as an analysis of the judicial history of DSC cases. The findings will promote a more thorough understanding of the matters involved in DSC claim litigation. As a result, they will lead to improved contract administration and reduce prolonged and costly litigation for construction projects.