This process becomes less fluid for those whose involvement begins in the bid phase because there are many unknowns at this phase of a project . The first step is to understand what is included in the bid package . Has the owner provided complete information ( to the extent this even exists ) to the contractor so a bid can be submitted ? Are any important details missing ? It is imperative that the contractor inform the owner of any inconsistencies , ambiguities , or errors in the documents provided by the owner before the contractor submits its bid . Then the contractor must begin its own review of the available information . What does the bid package require ? Does the contractor have to perform an inspection , and if so , how many inspections are required ?
Contractors should be aware that most bid documents will contain language that the contractor has or had the opportunity to visually inspect the conditions which could affect the work . This language will vary and may be discretionary in some cases ; however , the contractor should understand before signing any bid documents what their specific inspection obligations are . Bids can range from requiring the contractor to become generally informed of the site all the way to requiring a contractor to not only visit the project site but the adjacent site as well . However , regardless of what is required in the bid documents , a prudent contractor should perform at least one site visit and consider whether any additional inspections or testing is beneficial before submitting its bid .
Let ’ s now consider the difficulties that may arise during the construction phase . What should a contractor do if after review of all documents , inspections , testing and due diligence a differing site condition is discovered during construction of the project ? Most contracts require the contractor to promptly notify the owner of the differing condition before the conditions are disturbed . Lack of prompt notice could lead to denial of a claim . Upon submission of written notice to the owner , the contractor should diligently proceed with the unaffected work to the extent possible . If a Type I or Type II differing site condition is discovered , the contractor should leave the existing site condition undisturbed until further direction is received by the owner .
Now that you have discovered a differing site condition , who is responsible for the additional time and costs to address the issue ? Discovery of a differing site condition can lead to very different outcomes and responsibilities for each party depending on the language in the contract . The first place you should look to in the contract is typically called the “ Concealed or Unknown Conditions ” clause . This clause lays out the procedure for changed conditions and allows for an increase or decrease in the contractor ’ s cost or time if it is determined that the conditions have materially changed from those indicated in the contract documents . Without a changed conditions clause , contractors assume a significant risk in liability and generally cannot enforce a claim for changes encountered . Again , contractors should inspect the site before signing any bid documents , thereby strengthening any claim for materially changed conditions .
A Florida case demonstrates the importance of carefully reviewing your contract . In the case , a contractor ’ s claim
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