Implied Obligations in Construction Contracts

Association of Construction & Development
January 16, 2014 — 1,763 views  

In the world of construction, contracts are a common part of everyday business dealings. They specify many things such as the duration of the construction, the cost, and the site of the construction. But there are many things that are left unspecified. Such things are known as implied obligations. There are many aspects of a contract that come under implied obligations.

Implied Warranty of Plans and Specifications

Every contract contains plans and specifications. There is an implied understanding that the plans and specifications are accurate and well designed. This is usually not mentioned in a contract therefore it becomes an implied obligation.

The contractor has an obligation to review the plans and obligations to ensure that there are no defects or mistakes. If this is not done, the contractor can be later brought to court.

Implied Duty Not to Hinder or Delay

The contractor has an implied duty not to hinder or delay the project. He cannot put any obstacles to the completion of the project. He is also under an obligation to ensure that the project does not suffer from any delays. Any delays in the project will be the responsibility of the contractor.

Implied Duty to Provide Access to the Site

The contractor has an implied duty to ensure that the customers have access to the building site. He cannot deny the access to them. This also an implied obligation because most contracts do not make any mention of this principle. This principle has been affirmed in several court decisions.

Implied Duty to Provide Adequate Supervision

The contractor also has an implied duty to ensure that the construction site is adequately supervised. He cannot claim lack or responsibility for any thefts or loss of property that might occur. It is his responsibility to hire supervisors and security agents to monitor and safeguard the site.

Implied Duty of Good Faith and Fair Dealing

This obligation lies on all parties in the contract, not just the contractor. It means that all parties have the responsibility to act in good faith and always deal fairly with the other parties. It implies that the parties should honestly deal with each other and should not hide anything. They should also fairly deal with each other and should not resort to cheating or scams.

Implied Duty to Ensure a Safe Workplace

It is the duty of the contractor to ensure a safe workplace for his employees and subordinates. In the case of any accident or injury, the responsibility will come on him. Therefore it is of utmost importance for him to ensure that the workplace of the construction site is safe and up to modern standards of safety.

There are many implied obligations in contracts, meaning that they are left out of contracts and are not explicitly stated. But their importance has been affirmed again and again by courts. These implied obligations are very important to the successful implementation of contractual obligations and both parties are under these obligations.

Association of Construction & Development