Advanced Contractual Interpretation: Construction Contracts: A Practical Policy- Oriented
- IJLLR Journal
- May 1
- 2 min read
Advt. Dr Rajdeepsinh B. Jadeja, High Court of Gujarat, Ahmedabad
Adv. Dr Honey Govindbhai Thakkar, High Court of Gujarat, Ahmedabad
ABSTRACT
This paper thoroughly investigates the difficulties related to understanding construction agreements, which are naturally intricate because they involve numerous stakeholders, intricate technical details, and significant financial implications. The main aim of this research is to assess how courts and arbitration panels resolve unclear aspects within these agreements while upholding the effective execution of contractual duties. A doctrinal approach is utilised for this study, enhanced by an in-depth examination of past judicial rulings and arbitration methodologies.
The research encompasses a review of the principles that govern contractual interpretation, including the literal interpretation rule, the test for business efficacy, and the doctrine of contra proferentem. The focus is particularly on how these principles are applied in construction conflicts, where the terms of contracts often must be interpreted with consideration of both technicalities and business matters. The article investigates if these interpretive frameworks bring adequate clarity and uniformity to dispute resolution.
The outcomes reveal that while these principles present a systematic basis for interpretation, their real-world application tends to be variable. This variability is often a result of factors like unclear wording, the inclusion of specialised jargon, and the unequal bargaining strength among those involved in the contracts. Such issues frequently result in unpredictability and a rise in litigation or arbitration processes.
To address this, the research highlights critical areas that need reform, such as the necessity for clearer contract wording, better standardisation of terms, and more efficient dispute resolution procedures. The article concludes that a more unified strategy, merging established legal principles with practical aspects, is crucial to guarantee reliability, justice, and efficiency in the interpretation of construction agreements.
Keywords: Risk Allocation; Judicial Trends; Policy-Oriented Interpretation; Infrastructure Law; Dispute Resolution; Contract Drafting; Economic Efficiency; Legal Certainty; Construction Law.
