Errors and omissions in construction contracts can arise from mistakes in the contract documents or design plans. Common causes include miscalculations, lack of attention, inexperience, and using inexperienced staff. Some key prevention mechanisms for resolving errors and omissions include clearly defining the scope of work, seeking legal advice, documenting everything in writing, and carefully reviewing the contract. A contractor can be liable for unauthorized work or work not following codes and specifications, but the terms of a previous contract would not apply to a new project if it was not properly documented in writing.

1. UNIVERSITY OF GONDAR
INSTITUTE OF TECHNOLOGY
DEPARTMENT OF CONSTRUCTION TECHNOLOGY AND
MANAGEMENT
CONSTRUCTION LAW SEMESTER PROJECT
SECION 02
2022

2. What will be the prevention mechanisms which are preferable
for resolving problems with regard to errors and omissions in
construction contract?
Errors and Omissions in Construction Contracts
Two of the most serious problems to deal with in construction contracts are
errors and omissions. Both can appear in contracts as well as building
plans and project guidelines.

3. What Counts as an Error?
In a construction contract, an error is any type of mistake that affects the outcome
of the project. Errors can appear in just about any part of the construction project,
from design to finished construction. This becomes a legal problem when there is
an error in the contract, or there is an error in the design process that will lead to
contractual issues.

4. What Counts as an Omission?
Although slightly different, omissions act in a similar way as errors. An
omission is any mistake in the construction project that involves
leaving out important pieces of information. In many cases, this results
in leaving out small details in the design and construction of the
building.

5. Causes Of Errors And Omission
 engineering miscalculations;
 lack of attention;
 lack of knowledge;
 Inexperience; and
 using interns instead of more expensive experienced staff.

6. Common mistakes in construction contracts.
1. Uncertain whether contract is fixed price or cost plus
2. Uncertain whether contract is fixed price or cost plus
3. Excessive upfront payment by owners
4. Unclear consequences for delay
5. Incomplete warranty provisions

7. Negative impact of errors and omission in construction
industry
 Both Parties reputation in the construction market might be affected negatively.
 Increasing the Employer’s risks arisen from coordinating multiple contractors at the same Site.
 Increasing the Employer’s risks arisen from using incompetent contractors for the omitted
work.
 Increasing the Employer’s costs arisen from performing new procurement procedures for the
omitted work.
 Jeopardizing the Project’s completion date which would arise from coordination issues and
time taken to perform procurement procedures.

8. Prevention mechanism for resolving errors and omissions in
construction contract
1. Clearly define the scope of work
2. Ask for legal advice
3. Get everything in writing
4. Review the contract carefully

9. Is the contractor liable for something done on its own initiative?
Yes the contractor become liable;
 if he does something by his own initiative if that work have negative impact on
the process and outcome of the project.
 if he doesn’t work according to the rules and regulations ,codes and
specifications there is no doubt he become liable .
 Liability for the contractor arises when the construction doesn’t match
what is agreed to in the construction contract.

10. If a contractor does not have proper contract but has carried out work for the
same company before on a written contract, will the terms of that written
contract apply again?
NO….. Because there are difference between projects with;
 Time variation
 Price of materials, equipment’s, transportation, etc….
 temperature of work area
 norms of society
 structure of two companies
 transportation cost and the contract document should be written to minimize
occurrence of conflicts.

11. …….......Continued
So those documents forming the Contract shall be interpreted in the following order of
precedence in the event of any conflict between the documents comprising this
Contract:
 Agreement, including all appendices;
 Letter of Acceptance by the Public Body to the Contractor;
 The Special Conditions of Contract;
 The General Conditions of Contract;
 Bid Submission Sheet with Annexes;
 Technical Proposal with technical specifications;
 The design documentation (drawings);
 For Unit-price contracts: The Bill of Quantities and Price Schedule (after correction of
arithmetical errors);
 For Lump-sum contracts: The Breakdown of the Lump-sum Price (after correction of
arithmetical errors);
 Any other document listed in the SCC as forming part of the Contract.

12. ThankYou!