When you enter into a contract, the language in the contract means something. And if you don’t follow what the contract says, it will be used against you. It can be used to support the argument that you breached the contract. Or it can be used to demonstrate your lack of compliance with the contract does not entitle you to the recourse you are seeking. However, this does not mean under certain circumstances the language of the contract cannot be waived or modified by the parties’ course of conduct.

In a recent dispute, an owner and contractor sued each other under a cost-plus contract. The contractor recorded a construction lien and moved to foreclose its construction lien. The owner claimed it was over-charged and claimed the contractor breached the contract. The contractor also claimed it was not timely paid with improperly withheld payment applications. The trial court granted summary judgment in favor of the contractor, which was affirmed on appeal based on the parties’ course of dealing:

The trial court concluded that, although the parties’ cost-plus contract required that all change orders be approved in writing, the summary judgment record established that this provision was routinely waived by the parties’ course of dealing: [owner] would orally request changes to the project; [contractor] would perform those changes; and [owner] would pay the invoices for those changes.

Moscato Corp. v. Mutchnik Construction Group, Inc., 411 So.3d 570 (Fla. 3d DCA 2025)

Here, the parties’ course of conduct modified the administration of the change order provision such that when the owner wanted to enforce the change order provision to its benefit, and to the contractor’s detriment, it could not per the parties’ course of conduct. Thus, while technical contractual arguments do carry weight, this does not mean they are slam dunks if the evidence supports a waiver or modification argument based on the parties’ course of conduct.

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.