Contract Terms and Obligations

• Contracts "under the key" are important so that the terms and obligations of both sides are detailed. Because the contractor is typically considered more knowledgeable, in the event of litigation it is important to clearly state the contractor's obligations; lack of clarity will be reflected in the contractor. The terms of the contract should be specified clearly including the allowed assumptions which underlie the plan/design and expected results (including temporary charts). If one or more assumptions are found to be false, consequences should be listed (e.g. price revision, revised charts, and so on).

Test your knowledge of contract terms and obligations with this quiz focusing on the importance of clear specifications, assumptions, and consequences in contractor agreements.