1. Contract Changes
Construction contracts are unique because owner can make unilateral changes to contract (with consideration)

2. Contract Changes Changes in scope require change orders
Changes in time require delay or acceleration claims
Most claims are handled in change orders
Change orders must be in writing and confirmed
Contractor entitled to OHP

3. Contract Changes Document the changes in scope or time Estimate costs
Estimate time
Submit request for change order per contract
Get approval (dual or three-way signature)
Handouts of standard forms

4. Contract Changes
Field changes are used when there is no time for prior approval
Explain and document (notification clause)
Architect issues change directive, then contractor submits claim (court or arbitrator)
Constructive change for extra work caused by defective plans and specs or owner misrepresentation (MSP airport)
Contractor not responsible for synthesis and coordination of plans and specs

5. Contract Changes
Scope changes are different than constructive changes- owner adds work
If scope change becomes excessive, original contract can be voided
Contractor entitled to payment after new contract is agreed to
Each party must give consideration (prevents holdings tactics

6. Contract Changes
“evidence of writing” required for certain transactions
Sale of goods over $500 (UCC)
Scope of work exceeds one year
Involves purchase, lease or mortgage of property
Promises to pay debt of another
Agency contracts
Scope exceeds life of the entity
Agreements on consideration of marriage

7. Contract Changes Owners entitled to change the contract
Suppliers entitled to consideration, but “pre-existing duty” takes precedence
Promissory estoppel
Party has given reason to believe payment is due
Other party relied on that promise in conduct
Other party performs work and incurs costs

8. Contract Changes
Waiver- any party can agree to relinquish a right or ignore contract clauses
Delays
Inexcusable- contractor pays costs
Excusable- each party absorbs costs-
contract delays are usually spelled out in contract
Law delays are granted by court or statute
Compensatory- owner pays contractor for additional costs

9. Contract Changes Acceleration claims Speed up construction
Increase rate of work
Refusal to grant extension is same as acceleration claim
Liquidated damages and no damages for delay clauses are very difficult to enforce (exculpatory)
Notice and documentation are critical
Delays within schedule float are not qualified (conveying system at MSP airport)