Deciphering Construction Contract Jargon

Every industry has its own lingo and jargon. The construction industry is no exception. While construction has been around for thousands of years, it can be confusing for those just entering the trade due to a specialized language developed over time.

While the average construction professional may understand terms like “change order,” “submittal,” and  “superintendent,” legal terms may not be as familiar. Many professionals are urging lawyers to draft documents in “plain English,” such as shorter sentences and commonly understood words, rather than Latin and French legal terms. While the goal is to create clear, concise legal documents, lawyers are generally reluctant to deviate from precedent in their legal writing.

It is likely that legal documents will include some degree of legal jargon, at least for the foreseeable future. Here’s a look at some of the legal terms you should be familiar with as a contractor.

Pro Tanto

Pro tanto means “to that extent.” It is often used in construction lien waivers when the intent is for the lien claimant to waive its lien to the extent of payment. However, enforceability of a written waiver depends on whether the party understands which rights are being waived, so it’s better to use “to the extent” instead.

Force Majeure

“Superior force” is the literal translation from French. It refers to an event or impact that is outside the control of the parties’ control and could not be anticipated. Some examples include natural disasters, war, labor strikes, and government actions.

Indemnify

Indemnify means “to reimburse another for a loss.” In contracts, it is used at the beginning of a sentence describing the types of losses and circumstances under which one party will pay the other for a loss. So if you struggle with the word indemnify, you can substitute it for the word “pay.”

Mediation and Arbitration

Mediation and arbitration are terms that are commonly mistaken for each other. While both are dispute resolution processes, they differ. Mediation involves a neutral third party who works with the disputing parties to help them reach a resolution. Arbitration is when one or more neutral third parties issue a binding decision to resolve the dispute.

Warranty

Warranties are express or implied promises that certain facts are or will be true. A typical construction contract warranty states that the contractor warrants that the work will be performed in a “good and workmanlike manner.”

Contact Us Today

Construction contracts often contain a fair amount of legal jargon that can be confusing for the average person to understand. It’s important to understand everything in the contract, as it outlines your legal rights.

At  Linkhorst Law Firm, we are intimately familiar with construction contracts. A Florida construction contract lawyer from Linkhorst Law Firm can help you understand your rights and responsibilities. We have experience with drafting and negotiating construction contracts for projects large and small. Fill out the online form or call 561-626-8880 to schedule a consultation today.

Source:

dailyreporter.com/2025/03/28/a-primer-for-decoding-legal-jargon-in-construction-contracts/