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,"
