Differing site conditions: Overview, definition, and example
What are differing site conditions?
Differing site conditions refer to unexpected physical conditions or circumstances at a construction site that differ from what was originally anticipated or described in the project’s plans, specifications, or contracts. These conditions can include issues like poor soil quality, hidden obstacles (such as underground utilities or rocks), or environmental factors that were not identified before construction began. Differing site conditions typically lead to delays, increased costs, or changes in the scope of the project, as additional work is required to address the unexpected issues.
For example, if a construction project plan indicates that the soil is firm and stable, but excavation reveals that the soil is soft and unstable, this would be considered a differing site condition.
Why are differing site conditions important?
Differing site conditions are important because they can significantly impact the cost and timeline of a construction project. If unexpected conditions are discovered during construction, contractors may face the need for additional labor, materials, or equipment to address the issue. This can lead to disputes between contractors and project owners over costs and delays. Addressing differing site conditions early through careful planning, inspections, and contract clauses can help mitigate these challenges.
For contractors, it’s essential to identify potential site issues and ensure that contracts are structured to address the possibility of differing site conditions. For project owners, understanding this risk helps in budgeting appropriately and negotiating with contractors when unexpected issues arise.
Understanding differing site conditions through an example
Imagine a contractor is hired to build a new office building. The project plans assume the land is flat and that the foundation can be laid easily. However, when excavation begins, workers discover that the soil is much softer than expected, making it difficult to pour a stable foundation. This soft soil is a differing site condition, and the contractor may need to redesign the foundation to ensure stability, resulting in additional costs and delays.
In another example, a contractor is digging trenches for utility installation, but they unexpectedly hit a large, uncharted boulder deep in the ground. The boulder wasn’t accounted for in the project plans, so it becomes a differing site condition, requiring specialized equipment and more time to remove the obstacle.
Example of differing site conditions clause
Here’s how a differing site conditions clause might look in a construction contract:
“In the event that differing site conditions are encountered during the performance of the work, the Contractor shall promptly notify the Owner in writing. The Owner shall assess the situation and may make an adjustment to the contract price or schedule as necessary to address the unexpected conditions.”
Conclusion
Differing site conditions are unexpected or unanticipated physical conditions that can arise during construction, which differ from what was initially described or expected in the project’s plans. These conditions can lead to delays, increased costs, and the need for design changes. Properly managing the risk of differing site conditions through detailed inspections and contractual agreements can help minimize their impact on a project, ensuring that both contractors and owners are prepared for unforeseen challenges.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.