Chp5: Changes Flashcards
What are the types of changes?
1) Items that were accidentally left out from the original design
2) Changes sought by the owner, after owner’s evaluation of design
What are the elements of Change Clauses?
▪ The owner has the right to make changes within
the general scope of the contract.
▪ The contractor is obligated to perform the work
necessitated by the change.
▪ The change must be in written form and must
be signed.
▪ An adjustment to the contract price and/or
contract duration will be assessed by some
means or can be pre-determined.
What are the features of Change Clauses?
▪ Owner’s changes will become a modification of the original contract
▪ Changes must be legal when a change order is put into effect (in a written form)
▪ Each change must be described with necessary drawings and technical specs
What are the importance of Change Clauses?
If no Change clause, negotiation takes place. Negotiation differs for these scenerios:
1) If there is a competitive bidding process, the
owner has the advantage of having several
construction firms competing for the work.
2) If there are no competing firms, the owner
should have knowledgeable advisors or
trustworthy contractors to avoid undue charges
for changes.
Extra Work vs Additional Work?
Extra work: The work is outside and entirely
independent of the contract, which need not be
performed to satisfy original drawings and
specifications. (Need payment)
Additional work: The work must be
undertaken to meet contract requirements, and
without which the work requested in the original
contract could not be completed. (No payment)
Explain the concept of a Change Order
A change that carries with it a specific directive for the contractor to perform that work.
- mini-contract to perform a specific item of work
- Adjustments to original Contract
- Parties have contractually agreed that owner can make changes
Field changes Vs Change orders
Field Changes:
1) Personal judgement, no owner’s direct approval
2) No impact on the contractors’ duration or cost
Change orders:
1) Directive from owner to execute change
2) Adjustments in the contract duration or cost
Elaborate Change Orders Evolvement
- The owner will give the modification proposal to the general contractor.
- The general contractor carefully evaluates the potential impact of the change on the cost and duration of the project.
- The general contractor also will require subcontractors impacted by the change to submit quotations.
- The general contractor will submit a price quotation to the owner.
- If the quotation is acceptable, the owner will issue a change order. If the price is deemed unacceptable, the owner may ask the general contractor to reconsider the price, possibly by providing details to show a justification for the amount of the impact being projected.
- If this negotiation is successful, the owner will then issue the change order. If the price and/or schedule impact cannot be agreed upon, the owner may decide to cancel the prospects of the change altogether.
Can architects have the authority to issue change order?
No, Architects can only grant payment requests, reject
inferior work by the contractor, interpret drawings, and in general enjoy a great deal of power. Authorization must by the owner.
What are Cardinal Changes?
Changes are not within the general scope of original contact and are not covered in typical changes clauses.
Elaborate Proceed under Protest
o When a change on a public project is considered
cardinal in nature, the contractor should immediately inform the owner in writing.
o If the owner insists that the contractor perform the change under the provisions of the changes clause in the contract, the contractor should proceed under protest.
o If the contractor protests and subsequently is successful in having the change declared cardinal, damages may be claimed for the owner’s breach of the contract.
o If the contractor performs the work requested in a change order without protesting, a later claim by the contractor that the change was cardinal will probably be denied.
