As Florida construction attorneys, we believe it’s necessary to examine every option when protecting the best interests of your business. This is why in Part 1 of our two-part article, we introduced you to the DSC clause with a basic definition and an example of a case where the clause was the catalyst that helped a construction company gain some victory. In this second part, we will conclude our discussion with a further breakdown of the clause.
Two Types of Differing Site Conditions
There are two types of DSC clauses that are used in contracts: Type 1 and Type 2 Differing Site Conditions.
Type I Differing Site Conditions:
With Type 1, if you can prove that site conditions differ from what was initially specified in the contract, you can seek a claim for cost adjustment from the contracting officer. In order to secure the cost adjustment, a written notice must be given to the owner and it must be proven that you relied on the site condition as specified in the contract and the problem occurred after the fact which differed materially from what was initially indicated in the contract.
Type II Differing Site Conditions:
Type II site conditions deals with conditions that differ materially from what’s normally encountered at sites. To secure a cost adjustment, it must be proven that you were unaware of the real condition of the site even after an inspection.
Who Investigates the Claim?
As stated before, you must submit a written notice to the contracting officer alerting them to the site condition. Upon receipt of the notice, the officer will inspect the site. If it is found that the conditions are in fact different and has affected the contractor’s cost, a cost adjustment must be given and the contract must be revised.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.