Conflict between the acceptance criteria indicated in the technical documents may lead to disagreements relating to the performance of construction contracts. It follows then that there is a need to resolve these conflicts as quickly as possible to prevent undue interruptions on the progress of the project and the relations between the contracting parties. One of the legal tools for the prioritization of the acceptance criteria in the documents is called the Order of Precedence. This article focuses on the explanation of the concept, the use, and the impact of order of precedence in the technical and commercial contracts.
How do we define Order of Precedence and why do we need it?
Order of Precedence is important to any commercial contract as it provides for a critical clause in construction being the dispute resolution mechanism on the hierarchy of documents in the event of conflict or ambiguity. It serves as a roadmap towards dispute resolution, as it identifies which document/criteria should be in the lead or dominate. This is most pertinent in construction projects where entries such as specifications, standards, work breakdown structures and objectives are bound to conflict with one another.
More so, Order of Precedence is instrumental in establishing a well-defined structure which then promotes uniformity, decreases uncertainty as well as enhances the understanding of all the relevant parties. It also reduces chances of disputes at the time of executing contracts and hence smoothens decision making process thereby enhancing the speed at which decisions are made and improving the coordination between the parties.
Conflicting Acceptance Criteria And its Conflicts Resolution.
Let us presume that there are two different documents for the acceptance criterion for alignment of the flange face on a pipe spool. Document A(Project Specification) states. A limitation of 1 mm. while Document B Microwave-Engineering-Piping. Admits 1.5 mm. If we consider 1.5 mm as the actual misalignment, which is the case, then Document B’s tolerance would be satisfied but Document A requirements would not.
The Order of Precedence serves as a guideline on how to resolve these conflicts. It outlines a procedure to be followed so as to pick one common document for use. Here, in this order of documents, if Document A is placed higher than Document B, then the requirement in Document A will supersede and the 1.5 mm alignment would be ignored.
This system in the hierarchy of documents also avoids tensions in the anticipation since there exists a procedure for resolving disagreements with regards to acceptance criteria which enables all stakeholders to comply with the specified standards and approved documents.
What is an Order of Precedence List.
A larger document, with many different sections, usually has this hierarchy in the reverse order. An example of Order of Precedence list might be for instance:
Signed Contract: the highest, depicts the will of the people opening the order.
Statutory Requirements: legal and regulatory documents that will be more stringent than the ones revolving the project.
(Once the contract quoting the specifics of the supplies for the project is finalized, the SOW or Statement of Work is created. This document explains the “What” of the project along with the intended outcome of the project)
Scope of Work: stipulates the outputs and goals of the project in question.
Project Specifications: are those specifications that concern a certain project; for example, document A in our case specifying the deliverables.
Project Procedures: They provide guidelines for carrying out various tasks and ensuring compliance.
Design Codes and Standards: Such documents as Document B in the example are considered to be imposed industry specifications in the development.
Of this list we can call them ranks in each level, the higher the rank the better. Each project holds a specific purpose and need so this hierarchy overrides generalized needs of the industry.
How to Use the Order of Precedence
The preceding order may be employed through the following sequence of steps.
Identify the Conflict: Restrict the notion developed by the other rational justification in various sources regarding the same issue.
Refer to the Hierarchy: As per the explanation above the scope of applicable works shall be specified in advance in either technical documents or in contracts.
Determine the Priority Document: Hierarchy documents or criteria come to a working vision.
Resolve the Conflict: Criteria of acceptance described in the highest sitting document shall be respect in the solving of the battle.
This piece of work confirms that the assumptions made for making the decisions are clearly delineated and accepted by all the people, therefore, there can be less ambiguity or subjective interpretations.
Importance in Business Agreements
Apart from technical documents, the Order of Precedence is an important clause in all business contracts. It assists in the administration of contracts by managing and solving conflicts arising from the ambiguous and contradictory terms within the contract. By™ minimizing the chances of encountering difficult cases, it provides a way to solving problems which raises the expectations of the involved parties.
The Order of Precedence also increases the effectiveness of the project by preventing the wastage of time in deciding which document or criterion to use as a reference. It is important in the aspect of risk management by guaranteeing that the most important requirements of the undertaking are met.
Final Thoughts
The Order of Precedence is the document in commercial deals and technical documents that assists in solving issues while providing uniform decision-making in their process. It helps prevent any disputes that arise from competing acceptance criteria by providing a systematic ranking of the documents, thus allowing priority to be given to the most significant requirements. The use of Order of Precedence improves relations among the stakeholders, reduces risks and ensures that construction work proceeds with no disruptions. Therefore, knowing the relevant principles and using them correctly is imperative in the performance and settling of contracts.
