The Change Clause authorizes the owner to alter the work if the change in question falls within the general scope of the original agreement. If it does not, there is no inherent “right” of the owner to change the work.
Basic Elements. Most Change Clauses will incorporate similar provisions. Typically, they include:
1. Adjustments to the contract may only be effected by a change order.
2. The change order must be in writing, signed by both parties.
3. The change order must specify adjustments to both the contract price and the net effect on the project time.
4. The change order will be for work, that is, within the scope of the original contract.
5. No changed work is to be performed without a properly executed change order (except in the case where the contractor must act in an emergency to prevent injury or property damage).
When asked to perform changed work without a finalized change order, if an AIA contract document is in force, the owner should be directed to the article dealing with Change Orders and that section of the article relating to the Construction Change Directive (CCD), whose purpose is to allow change order work to proceed when there is either no time to assemble a cost or lack of agreement on cost. Section 8.7 in the chapter on change order work spells out the details of initiating and proceeding with change-order “extra work” via the CCD.
If a contract other than an AIA Owner/Contractor document is in force, present this CCD approach and obtain agreement to proceed with the extra work following those principles.
Post your comment on this topic.