- 2071 Magh · 4 marks
Contract documents, priorities, interpretation
Short answer
A contract document is the set of all documents forming the agreement and read as one. Priority runs from contract agreement, acceptance, tender, particular conditions, general conditions, specifications, drawings to priced BOQ. Interpretation reads the contract as a whole, gives special over general and written over figures, and resolves ambiguity against the drafter.
Define contract document. What are the priorities of contract documents? Explain the rules of contract interpretation.
A contract document is the set of all documents that together form the agreement between employer and contractor and are read as one. They include the agreement, conditions, specifications, drawings and priced bill of quantities.
Priority of contract documents
When documents conflict, the higher one governs. A typical order is:
- Contract agreement
- Letter of acceptance
- Letter of tender (bid)
- Particular/special conditions of contract
- General conditions of contract
- Technical specifications
- Drawings
- Priced bill of quantities (BOQ) and schedules
- Other documents listed in the agreement
The exact order is stated in the contract.
Rules of interpretation
- Read the contract as a whole, to find the common intention of the parties.
- Special conditions override general ones, and specific words override general words.
- Words in writing prevail over figures; typed text over printed.
- Ordinary meaning is given to words unless defined.
- If ambiguity remains, it is interpreted against the drafter (contra proferentem).
- Singular includes plural, and headings do not affect meaning.
- Applicable law of Nepal governs; the engineer clarifies, and unresolved matters go to dispute resolution (adjudication or arbitration).
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