Florida Building Contractor Business/Finance Practice Exam

Which statement is generally true about construction contracts?

1. Specific provisions prevail over general provisions

2. Oral agreements are always binding

3. General provisions have priority over specific provisions

4. All changes must be documented in writing

The correct answer is: Specific provisions prevail over general provisions

The statement that specific provisions prevail over general provisions is generally true in the context of construction contracts. This principle recognizes that when there are conflicting terms within a contract, the specific details tailored to particular situations take precedence over broader, more generalized terms. For instance, if a contract includes a specific clause about a unique requirement for a project, that clause is treated as more authoritative than a general term that may apply to many projects. This hierarchy is crucial in contract interpretation, as it ensures that the parties adhere to the finer points that reflect their actual intentions and agreements, thus providing clarity and minimizing disputes. In construction contracts, where specific conditions, methods, or calculations may be crucial for the execution of work, the priority of specific provisions helps to uphold the contract’s intent and enforceability effectively.