Ambiguities are the primary causes of disputes under construction contracts – Who owns the float?
Date: 25 November 2020
Who owns the float?
Most construction disputes occur due to ambiguities and lack of understanding of rights and obligations under a Construction Contract.
For example; if the contract does not specify who owns the float (party A or party B), then in many cases that we have seen, party A will argue that the float belongs to it and not to party B and vice versa. This applies to contracts between developers and head contractor as well as between head contractor and subcontractors.
As a general rule, if there are no provisions in the contract as to who owns the float, then the project owns the float, i.e. first come first serve on condition that the party using the float is not deliberately using it.
In my opinion, it is best to make this clear in the contract, so all contracting parties are aware of it.
I highly recommend that you carefully read your contract and understand every provision and seek expert advice. It is wise and essential to set up steps and procedures that correspond with the contract mechanism to ensure compliance with your obligations and to protect your rights.
By FC International Ltd © Copyright 2020