There are several basic rules of contract interpretation that generally apply to all contracts, regardless of the industry. These principles form the basis for the initial application of the law in deciding how conflicts will be resolved. Even if these ideas were absent in the form of strict rules, their principles are useful to apply to determine the practical structures of various situations and options. They mesh closely with the next section that will apply additional rules directly to construction contracts.
The descriptions are in short outline form to describe the principles in the most direct manner. They have been selected for inclusion here because of their common application to our industry. Discussions have been kept direct so they can be immediately understood and applied; discussion of theoretical reasonings are accordingly kept to a minimum.
Finally, it is important to be aware that discussions of “Contract” principles include the entire contract, including the plans, specifications, and all other contract documents as described in Section 2.4.2 of this Operations Manual.
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