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23 Feb, 2022

Modifications and Release Agreements in Construction Contracts

2022-02-11T13:08:00-06:00February 23rd, 2022|Change Orders, Construction Contractor Advisor, Construction Contracts|

Construction contracts typically allow for modifications during the course of performance. Parties can agree to change the scope of work or price that was originally agreed to. For example, contractors can run into unexpected costs due to another’s negligence or delays. Material costs may go up and the contract price may become inadequate. Modifications allow for contractors to be fairly compensated for the increased costs that result through no fault [...]

7 Apr, 2021

Work Changes and Considerations

2021-04-08T07:25:42-05:00April 7th, 2021|Change Orders, Construction Contractor Advisor, Construction Contracts|

Changes on construction projects are inevitable, especially with the reality of projects during and after the COVID-19 pandemic. Due to this inevitability, owners should consider including contingency in the budget to deal with change orders. Accounting for legitimate changes quickly and obtaining an agreement that the payment fully resolves the issue can limit larger disputes down the road. Unresolved change orders often result in disputes that end up with legal [...]

30 Sep, 2020

Change Order Best Practices—Document the Request

2020-09-26T11:29:24-05:00September 30th, 2020|Change Orders, Construction Contractor Advisor, Construction Contracts|

You know the situation, the project manager or superintendent just cornered you on the job site and told you that he needs some extra work.  But, what you do next may very well make the difference on whether you get paid for that extra work. Document the Conversation The first thing you should do is confirm the conversation in an e-mail to the project superintendent or whomever is your point [...]

11 Feb, 2015

Beware of Statutory Limits on Change Orders

2018-04-23T23:55:11-05:00February 11th, 2015|Construction Contractor Advisor, Public Contracts|

While change orders are always part of construction projects, it’s important to know whether a public agency is limited on how much it can increase the scope of the work through change orders. A contractor in Virginia found out the hard way that the state agency did not have the authority to increase the scope of the project and thus the contractor could not collect for the extra work. In [...]

3 Apr, 2014

Waiver of Change Order Requirements? It Can Happen.

2018-04-23T23:55:14-05:00April 3rd, 2014|Construction Contractor Advisor, Construction Contracts|

In the last post, I discussed a Montana case in which the contractor failed to follow the notice provisions contained in the contract and lost its claim because of it. But, sometimes a court will excuse your failure to follow the technical requirements of the contract. In a recent Nebraska case, the court excused a subcontractor’s failure to follow the notice provisions and allowed it proceed with its claim. The [...]

4 Feb, 2014

The Ups and Downs of Escalator Litigation, Part I, Approved Shop Drawings Can Still Get You Sued

2018-04-23T23:55:15-05:00February 4th, 2014|Construction Contractor Advisor, Construction Contracts|

It’s never fun getting sued, especially when you didn't do anything wrong. That was the situation for Otis Elevator in a recent case. In this post we’ll look at the problem created by poorly drafted plans and specifications. In the next post we’ll review the impact of contract language that says the architect is the final decision maker on all issues. What happened? A small airport was expanding and needed [...]

26 Oct, 2011

Change Orders – Do They Really Need to Be In Writing?

2011-10-26T09:52:14-05:00October 26th, 2011|Change Orders, Construction Contracts, Construction Law, Contract|

Well, it depends. Client questions and case law abound with questions about change orders and whether they really need to be in writing. Although Nebraska courts have not dealt with the issue in a while, courts around the country have recently addressed this question and it always comes down to the specific facts involved. But, if your contract requires a change order in writing, you would be well advised to [...]

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