Contractor’s behavior under biased contract conditions coupled with a diffused authority of the engineer -

Abstract

Not all owners adopt standard general conditions for drafting construction contracts, and even those who do they end up meddling with such conditions. Eventually, making them biased towards preserving the interest of the owners and giving them the upper hand in respect of the remedies made possibly available for dealing with contractual issues that are bound to surface during the fulfillment of the contract. Such practices by owners can have major implications on the options available to contractors when they are to react to matters and issues that are at the core of what has been prescribed in a biased or a vague manner under the contract conditions. The objectives of this research are to investigate those ways and means that can possibly help contractors react better in contracts that are biased and where the authority traditionally invested in the Engineer is made diffused by owners. The methodology to be followed in this research is a case-based and involve:(1) reviewing the relevant literature, (2)describing the case study selected for the purpose of this research in which the contract was deemed biased and vague, (3) analyzing the case’s contract conditions pertaining to the main issues encountered in contrast to the 1999 FIDIC clauses governing the same issues, (4) studying the full chronology of events noting the actions taken by the contractor, if any, versus the actions that would have been warranted under the FIDIC-based conditions, (5) making inferences as the tactics and measures that can be considered by contractors when faced with similar or related circumstances, and (6) offering conclusions and recommendations. The outcome of this research will help shed light on the preparations and actions to be exercised by contractors when dealing with biased and vague contracts. The findings are expected to be an eye-opener also to owners by way of showing that meddling with standard or reasonable contract conditions can have major detrimental implications on the performance of the construction contra