Construction contracts, in infrastructure projects mainly refer
to airports, structures, bridges, roads, dams, ports, and other
civil engineering activities. Historical data suggests that in most
government awarded contracts, particularly of high value, the
bidders tend to underbid so as to achieve the status of
"L-1" with an ultimate aim of subsequently claiming
additional costs from the government.
The duration of such contracts may last for months or even
years, and a midnight or overlooked clause, or an unanticipated,
underestimated, or miscalculated aspect, can ensnare contracting
parties in seemingly endless litigation involving time and
costs.
Faced with such significant risks, and given that a contract is
an agreement enforceable in law, both parties prefer to protect
their interests by utilising all available means and
procedures.
