How to Manage Defective Specifications to Protect Project Outcomes

Success on any construction project relies heavily on effective communication between the people who own and design the project and the people who build the structure. Construction specifications are one of the vehicles for getting that message across. If the specifications are somehow incorrect or misleading, it can have a serious negative impact on project outcomes.

This article will define construction specifications and detail how they can impact projects, then discuss protections and strategies construction stakeholders can take.

Examining & Defining Construction Specs

To understand how destructive defective specifications can be, first it’s necessary to understand the role construction specs play in successful project outcomes. Correctly crafted construction specifications can be categorized as either prescriptive or performance. 

Prescriptive Specifications

Prescriptive specs are detailed, written descriptions of the materials, workmanship and installation procedures required for a construction project. They serve as a guide from the owner and design team – made up of architects and engineers – to the contractor, communicating what it will take for the project to meet the design intent and quality standards.

Performance Specifications

Performance specifications focus on a project’s desired outcome. They may allow contractors more freedom in achieving project goals, but the room they leave for interpretation could lead to misunderstandings and increased liability for the contractor.

Defective Specifications

Defective specifications are construction project guidelines that contain errors, omissions or ambiguities. If the contractor follows the defective specs to the letter, the project will turn out wrong. Although contractors may be on the lookout for defective specs, in many cases issuing the wrong instructions may lead to misunderstandings or incorrect implementation of design intent and ultimately to delays, cost overruns and the possibility for legal disputes. 

When there’s a problem with the project outcomes, the contractor may be able to make a claim to have the owner cover any added costs in getting it right — if they can prove the problems stemmed from defective specs. In order to prove that a construction specification is defective, contractors may have to show that the specs are not suitable for producing the required result.

What Causes Defective Specs?

Sometimes, construction disputes may be caused by miscommunications or misunderstandings, like if the contractor and owner differ in their interpretations of contract documents. Defective specifications, on the other hand, may refer to demonstrable flaws in project specifications. There are a few different situations that can lead to these types of errors.

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  Unedited Templates

  Specs preparations may begin with a template or some generic starting point, which are then tailored to meet the needs of the current project.

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  Errors in Design

  The design team may make mistakes caused by a lack of research or just oversight of important details. For instance, plans may not follow applicable building codes.
  

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  Changes in Project Scope

  Even when specifications start out complete and correct, project changes can make them obsolete.

The Cost of Defective Specs

Specifications behave like a road map for successful projects. If the specs are wrong, contractors may build part of the project in a way that’s contrary to what designers and owners envisioned. The fallout can be significant. Contractors may have to correct the work, which can lead to project delays, added costs and a lot of frustration for everyone involved.

Defective specs may even lead to disputes and litigation, straining contractor-client relationships and sometimes resulting in costly legal battles. Whether the specs provided were prescriptive or performance-based may impact contractors’ level of risk for litigation. Because they’re more definitive, prescriptive specifications may leave little room for interpretation, protecting contractors from liability if those specs fall short.

Using the Spearin Doctrine to Recover Costs

Contractors in the US have legal precedent for recovering their added costs from owners when they can show the costs were caused by defective specifications or drawings. The legal cases have centered around the Spearin Doctrine, which is the implied warranty that owners give contractors that the construction documents provided are accurate.

The Spearin Doctrine has been applied widely across the U.S. in different types of cases, and can act as a safeguard for contractors by assigning owners the responsibility of providing accurate project specifications. Still, contractors are not off the hook for doing their due diligence to make sure the project as contracted is viable.

Note: Contractors need to be aware of relying on the Spearin Doctrine, as it may apply differently depending on the project’s location and whether it is based in a public or private contract.

How to Recognize and Avoid Problems From Defective Specs

Contracting teams can avoid the negative consequences of defective specifications by identifying and correcting problems early in the process. This involves a thorough review of the specifications by all stakeholders, including the owner, architect, engineers and contractors.

Potential issues to look for include ambiguities, inconsistencies, omissions and unrealistic requirements. By addressing these problems before the contract is awarded, the parties can minimize the risk of disputes, delays and cost overruns during the construction phase.

Check specs thoroughly.

Looking through spec sheets and comparing it with all other project documentation can illuminate any inconsistencies. Though contractors are contractually obligated to follow the design and specifications documents, they also have a responsibility to do their part to ensure they perform work with acceptable standards of workmanship. Contractors can do their part to be familiar with the local laws and site conditions to make sure the final product is free of defects.

Encourage close collaboration between designers and contractors.

Open and often communication between stakeholders can make sure everyone is aligned and aware of any changes to project scope. By working together, everyone shares an understanding of project requirements so they can work together to identify and fix defective specifications.

Provide adequate project oversight.

No matter what the specifications say, materials and construction methods should be approved through the submittals process. Contractors may want to focus on thorough training so that team members know how to compare expectations with the materials and methods listed and manage changes early on.

Understand contract terms.

Familiarize yourself with the terms and conditions of the contract to better identify defective specifications. Utilize the expertise of your team members.

Seek outside guidance.

Third-party reviews or audits can provide an objective assessment of specifications and identify potential issues before they escalate. 

To recover costs resulting from defective specifications, contractors need to provide evidence of the following:

• Due Diligence in Ensuring Correct Specs

  The contractor must demonstrate that they took reasonable steps to verify the accuracy and completeness of the specifications.

• Strict Adherence to Specs

  The contractor must prove that they followed the specifications precisely as they were written.

• Causation

  The contractor must demonstrate that following the defective specifications directly caused the construction defect and increased project costs.

• Ignorance of Defects

  The contractor must show that they were unaware of the defective specifications before construction and could not reasonably have been expected to know about them.

Substantiating these claims necessitates thorough documentation throughout the project, encompassing details about what occurred, the actions of each stakeholder and the additional costs incurred.

Successful legal outcomes in construction hinge on meticulous, consistent and organized information gathered throughout a project. Construction management technology can streamline data collection and storage, contributing to more favorable results.

Mitigate Risks of Defects With Specification Management

Defective specifications pose significant challenges in construction projects, impacting costs, timelines and stakeholder relationships. By checking specs carefully, employing proactive strategies to identify and address issues early and using tech to collect and organize construction data in case of construction defects, contractors can mitigate these risks. Embracing best practices can lead to more successful project outcomes, emphasizing the importance of diligent specification management in the construction industry.

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