Renovation contracts pose unique problems
for a building contractor. In bidding
a renovation project, a contractor cannot
tell precisely what hidden conditions may
increase its cost. It is possible to ensure
that you are compensated for such
unexpected contingencies, however. The
best vehicle for this is the inclusion of a
differing site conditions clause in the
contract.
This clause allows the contractor to
recover costs if he or she encounters
either of two conditions while performing
the work. The most common condition,
called the "Type I differing site condition,"
is a latent physical condition at the
site differing materially from the conditions
indicated or represented in the
contract documents. The second condition,
appropriately called the "Type II
differing site condition,"