Womble Bond Dickinson attorneys Todd Conley and Jeremy Baker contributed to a new article titled, “Contract Disputes: Engineering Pitfalls Buried Within Contract Language”.  The article is published in the December 2025 issue of CEP. The magazine is a publication of AIChE, the world's leading organization for chemical engineering professionals, with more than 60,000 members from more than 110 countries. Exponent thermal science engineers Sean Dee, Ph.D., Andrew DiMaulo, Ph.D., and Gregory Haussmann, Ph.D., also co-authored the article.

Contracts play a critical role in the world of engineering because they establish a legally enforceable agreement between entities with defined obligations. When capital projects are constructed, contracts executed between the project sponsor (owner), contractor, and a variety of subcontractors outline roles, responsibilities, and expectations within the project. However, challenges that arise during design, procurement, construction, commissioning, start-up, and initial operation of a new facility can lead to costly delays, budget overruns, warranty claims, or underperforming facilities. As a result, disputes may escalate into lawsuits where liability (who is at fault) and damages (how much it costs) are determined through the ensuing litigation process.

Capital project contract disputes can occur for a variety of reasons. The most straightforward scenario involves a breach of contract — when one party fails to fulfill obligations such as delivering equipment, services, or payment as described in the contract. More complicated circumstances emerge when contracts suffer from:

  • vague or ambiguous provisions
  • unfair or unenforceable provisions
  • provisions without clear dispute resolution pathways
  • errors of omission where there is no provision to address a key issue encountered during project execution

These complex issues can be compounded when these deficiencies involve engineering concepts that may be difficult to translate into clearly written and interpreted contract provisions.This article examines common pitfalls that are encountered when contract disputes arise in engineering projects. A case study involving a biomass-fueled utility power plant is presented as the framework to illustrate key concepts.

This article examines common pitfalls that are encountered when contract disputes arise in engineering projects. A case study involving a biomass-fueled utility power plant is presented as the framework to illustrate key concepts.

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