Construction contracts frequently reference or incorporate additional documents pertaining to the work. Though these documents may not be physically attached to the contract, they could become terms of the agreement. Adding to the confusion, other documents addressing the performance of the work may be generated after the contract has been signed. At some point it becomes difficult to determine the terms that govern the transaction.

In a case reported this week, a fabrication subcontract lacked a schedule for the delivery and installation of the fabricated components. But a detailed "layout schedule," created after contract execution, was quite specific on that matter. When the fabrication subcontractor missed the deadline, the contractor could terminate the subcontract for default.

Other cases reported this week involve resolution of a conflict within the design documents and the right of an unlicensed subcontractor to recover payment from an unlicensed prime contractor. The conflict between a drawing note and a specification was resolved under the order of precedence clause. The unlicensed sub was allowed to recover because the North Carolina licensing statute is intended to protect the public from unlicensed contractors, not to protect contractors from each other.