Implied obligations in Construction Contracts

In a fast moving highly competitive business hub; the process of Construction Contracts preparation is usually shortened by resorting to previously prepared forms of agreement templates. Even if due diligence is carried out during the contract preparation stage, it becomes extremely difficult to anticipate for and include every single contingency that may arise from contract misinterpretation resulted from implicit terms. As such, to mitigate being involved in numerous disputes and arbitration cases due to contractual “gaps”, all parties bounded by a binding agreement are recommended to be aware of their Implied Obligations and ensure that their implicit duties are accommodated for, as appropriate, within the construction contract. In this study, a survey measuring the gap between perceptions of 13 pre-identified Implied Obligations and actual experiences has been created and collected from 30 people out of 100 surveys sent out that had demonstrated even though most of the Implied Terms pre-identified are generally agreed on as Obligations by most parties involved in a contract, they are; however, rarely experienced most of the time. This indicates the potential of a high number of claim cases arising due to these contractual gaps.