Change Claims

Almost every construction project encounters change. In fact, it has been said that the only constant in construction is change. Whether it’s a change to the scope of work, a revision to the specifications, or an impact to the means and methods of performing the work, changes can significantly impact a project’s cost and schedule.

There are numerous reasons why changes may occur on a construction project, including, but not limited to:

• Unclear bid documents
• Owner directed changes
• Late, incomplete, or defective drawings; specifications, and other contract documents
• Preferential changes by the owner
• Misinterpreted contract requirements by the parties
• Differing site conditions
• New or revised codes/standards
• Rework
• Impacts/changes to the construction means and methods
• Scope additions
• Acceleration and/or schedule changes
• Constructive changes

Changes can impact a project in many different ways. In a majority of cases, the change in the work is handled by a change order in which the parties agree to the scope of work, as well as the cost of the work or pricing to be used. In this way, the change is incorporated into the overall contract and the contractor is compensated. The change order management process generally involves the following:

1. Reviewing the contract, understanding the scope of work, and knowing the parties’ responsibilities
2. Identifying the change or potential change
3. Providing notice of the change in accordance with the contract
4. Documenting the change, including costs and schedule impacts related to the change
5. Preparing and pricing the change request
6. Negotiating and resolving the change and executing a signed change order

Disputes arise when the owner and the contractor have differing views regarding the following:

• Whether a change has actually occurred, or was the work contemplated in the contract scope of work
• The parties’ responsibilities
• The change order pricing or schedule impacts