Differing Site Conditions: Who Is Responsible for the Risks of Additional Costs?

Claims for Differing Site Conditions (DSC), also commonly known as Changed Conditions, mainly occur when subsurface or latent physical conditions encountered at the construction site differ materially from those that are represented in the contract documents. DSC claims increase the risks to the project cost and schedule and may lead to prolonged court litigation. This study primarily focuses on who is responsible for the risks of the additional costs and delays associated with the DSC claims. To evaluate these risks, the research methodology includes a review of the literature as well as the analysis of different types of DSC claims and court requirement to prove such claims. The study finds the risk responsibility is shared between both the owner and the contractor and depends on disclosure of factual, qualified, and interpretive geotechnical information. The study further suggests strategies to both parties on claim avoidance and claim management.