Clarity and Improving Level of Understanding of Contract Documentation

The contractual obligation by any party in any contract will be interpreted by terms and contents of the documents laid down in the contract. Effective interpretation and understanding of the contractual obligations will be much dependent on the clarity of the documents in translating the needs and requirements implied as in the agreement. Improper understanding of the documents may lead to the different interpretations that may result in unnecessary contractual problems such as disputes, unnecessary claims, reworks, shoddy works, and even litigation. This paper presents the results of the study related to issue of understanding of construction contract documentation in Malaysia. Also presented are the factors that inhibit understanding of the contract as well as factors that can help to make the interpretation process much easier. Eventually, a proposal of various factors that can be used to improve the level of understanding of contract document is suggested in this paper.