Chapter 12 Change Orders Flashcards
Changes made through addenda
Become part of the bid and automatically included in the contract.
Change Clauses include what elements?
- O’s right to make changes w/in scope of K
- C is obligated to perform
- Change must be in writing and signed
- An adjustment to K price and/or duration will be assessed
Changes made by O will?
Become a K modification.
Changes must be described with what?
Drawings, and specs
Change order
Whenever a change is issued by the owner with specific directive
(Mini K)
Field Change
Minor change that has no impact on the duration or the amount of the K and is often authorized by field personnel
What must C include in proposed price of a change?
Labor, taxes, materials, subs, equipment, insurance
Formal change order
Issued if the O finds the the price quote acceptable. Otherwise O may ask to reconsider price
Abandonment
Change is too drastic/ exaggerated & K is Void.
Liquidated damages
Damages that were designated during the formation of the contract in order to compensate
Cardinal Changes
Changes not within general scope of the the Original K.
Two Issues that define Cardinal Change
- Essential Identity of the project is altered.
- Method or manner of performance is drastically changed.
Where are Cardinal changes a problem?
Public works
What should be done if a change is considered Cardinal?
- C should inform owner ii writing
- If owner insists, the C should proceed under protest
- If protests and succeeds in declaring the change Cardinal, damages may be claimed for breach.
- If C does not protest nothing will be done
Main reasons why C may not want to perform Cardinal change
- No expertise to perform change
- Bonding issues
- Financial resources
