{"id":897484,"date":"2020-05-19T11:08:47","date_gmt":"2020-05-19T17:08:47","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897484"},"modified":"2020-05-19T11:08:49","modified_gmt":"2020-05-19T17:08:49","slug":"construction-contract-interpretation-critical","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/","title":{"rendered":"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19"},"content":{"rendered":"\n

Rachel Burkhart, Carl Pebworth and Caleb Tobin | Faegre Drinker Biddle & Reath<\/a><\/p>\n\n\n\n

Understanding a construction contract<\/a> necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant. In today\u2019s uncertain business environment, an appreciation for that inherent tug-of-war can help construction professionals deal more effectively with the fallout from the COVID-19 pandemic.<\/p>\n\n\n\n

Text vs. Context in Analyzing Written Contracts: An Overview<\/h2>\n\n\n\n

Over time, contract law has crept along a path leading from \u201ctext\u201d toward \u201ccontext,\u201d and from a rigid \u201csanctity\u201d toward a more considered \u201cfairness.\u201d Historically, written contracts were narrowly construed and enforced under strict contract liability doctrine. In American contract law, this concept was expressed as the doctrine of sanctity of contract, which placed all risks of performance on the performing party unless the contract or the law expressly stated otherwise.<\/p>\n\n\n\n

The legal presumption behind strict enforcement of written contracts, particularly commercial contracts entered into by sophisticated parties, was that the parties were presumed to have appraised carefully all risks inherent in performance of the work prior to entering into the contract, and to have agreed upon a price commensurate with their respective assumed risks and obligations. Those who agreed to perform a contract without expressly excepting any performance risks, necessarily were presumed to have assumed all risks in exchange for the agreed contract price. Parties entering into complex construction contracts typically were viewed as sophisticated parties, and few such contracts have been denied enforcement under the principle of \u201cadhesion.\u201d  This remains the basic rule of contract interpretation and enforcement in some jurisdictions.<\/p>\n\n\n\n

Nevertheless, judicial analysis according to \u201ctext\u201d began to expand to include terms and interpretations arising from the fundamental significance of \u201ccontext.\u201d Courts have increasingly mitigated against the harshness of the doctrine of sanctity of contract to construe express contracts contextually as subsuming (1) terms and conditions implied by the \u201ccontext\u201d of the transaction, and (2) excuses for contractual non-performance viewed from a \u201cpractical\u201d economic rather than an \u201cabsolute\u201d physical perspective. As one example, the idea of the \u201cimpossibility of performance\u201d was expanded to accommodate the understanding that an agreement is \u201cimpossible\u201d as a practical matter if, due to supervening or preexisting causes, it can only be performed at a prohibitively excessive or unreasonable cost.<\/p>\n\n\n\n

The implication of contract terms and conditions into express contracts as a matter of transactional \u201ccontext\u201d had far-reaching significance \u2014 context became relevant to every contractual transaction. Courts began to adopt the notion that, at least under certain circumstances, the legal content of any contract was not limited to its text as expressed in its \u201cfour corners.\u201d The practical reality of viewing a contractual relationship in factual \u201ccontext\u201d rather than solely by its \u201ctext\u201d was that legal analysis became \u201ctransaction specific.\u201d<\/p>\n\n\n\n

Implications During the COVID-19 Pandemic<\/h2>\n\n\n\n

Why discuss context and text in construction contracts in 2020? Well, business circumstances have emerged in the past weeks and months that have not been present in the living memory of any person active in construction today. What did the parties intend in a circumstance like the COVID-19 Pandemic? Did the parties consider an analogous situation? Who is responsible and how is risk allocated in an extraordinary construction environment with conditions and work stoppages caused by a pandemic, unforeseen labor and material shortages and governmental quarantines? Understanding the subtlety and tension in defining and resolving these questions is essential for a successful construction actor in 2020. It is key to know the differing ways these questions are answered in different forums and jurisdictions, too. Navigating these issues effectively and nimbly has never been more important.<\/p>\n","protected":false},"excerpt":{"rendered":"

Rachel Burkhart, Carl Pebworth and Caleb Tobin | Faegre Drinker Biddle & Reath Understanding a construction contract necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant. In today\u2019s uncertain business environment, an appreciation for that inherent tug-of-war can help construction professionals deal more effectively with the fallout… Continue reading Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224,11113],"class_list":["post-897484","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-covid-19","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nText vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19 - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Understanding a construction contract necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19 - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Understanding a construction contract necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-19T17:08:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-19T17:08:49+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19\",\"datePublished\":\"2020-05-19T17:08:47+00:00\",\"dateModified\":\"2020-05-19T17:08:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/\"},\"wordCount\":602,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise & Consult\",\"Construction Contract\",\"Covid-19\"],\"articleSection\":[\"Construction Contracts\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/\",\"name\":\"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19 - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2020-05-19T17:08:47+00:00\",\"dateModified\":\"2020-05-19T17:08:49+00:00\",\"description\":\"Understanding a construction contract necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19 - Advise & Consult, Inc.","description":"Understanding a construction contract necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/","og_locale":"en_US","og_type":"article","og_title":"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19 - Advise & Consult, Inc.","og_description":"Understanding a construction contract necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2020-05-19T17:08:47+00:00","article_modified_time":"2020-05-19T17:08:49+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19","datePublished":"2020-05-19T17:08:47+00:00","dateModified":"2020-05-19T17:08:49+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/"},"wordCount":602,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Advise & Consult","Construction Contract","Covid-19"],"articleSection":["Construction Contracts"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/","name":"Text vs. Context: Why Construction Contract Interpretation Is Critical to Navigating COVID-19 - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2020-05-19T17:08:47+00:00","dateModified":"2020-05-19T17:08:49+00:00","description":"Understanding a construction contract necessarily oscillates between text \u2014 what is written \u2014 and context \u2014 what is intended and meant","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-interpretation-critical\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3Lty","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/897484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=897484"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/897484\/revisions"}],"predecessor-version":[{"id":897485,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/897484\/revisions\/897485"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=897484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=897484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=897484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}