RJO Clause Samples

The RJO clause, often referring to "Reasonable Judgment of the Owner," grants the owner the authority to make determinations or decisions under the contract based on their reasonable judgment. In practice, this means that whenever a situation arises requiring a decision—such as approving work, assessing compliance, or determining if a standard has been met—the owner evaluates the circumstances and makes a call that must be reasonable and not arbitrary. This clause ensures that the owner's discretion is exercised fairly, providing a balance between owner control and contractor protection, and helps prevent disputes by setting a standard for how decisions should be made.