Construction projects are riddled with risk. Differing site conditions, changes, delays, bad weather, potential cash flow problems, and claims, to name a few. Good construction contracts should help to reduce the risks of uncertainty by planning and predicting how to deal with problems.
Almost any problem on a construction project can be traced to one of two things: changes or delays (even delays are really just changes). As in life, embrace and manage the change don’t run from it.
For Contractors:
- Understand and apply the changes clause in your contract;
- Provide written notice;
- Keep working on unchanged work to mitigate delays (read more);
- Confirm your entitlement under the contract terms;
- Track and timely present your estimated and actual costs to the Owner; and
- Timely present a complete and well-reasoned story about the change to the Owner.
For Owners:
- Understand and follow the changes clause in your contract (you probably have obligations even if you disagree there is a change);
- Clearly communicate in writing your complete or partial (dis)agreement with a change; and
- Timely and reasonably review and consider claims or change proposals (you have more control during the Project than afterwards).
Roads & Bridges
Where Does the Buck Stop?
Jon is a monthly contributor to Roads & Bridges magazine. He has been writing the law section for the magazine since January 2020. The link below will take you directly to the Roads & Bridges […]
Pay-If-Paid Unenforceable in Virginia Starting Jan. 1, 2023
As of Jan. 1, 2023, pay-if-paid clauses are unenforceable, regardless of whether a surety/payment bond claim is involved. This is only for subcontracts created on/after 1/1/23.
Also for subcontracts created on/after 1/1/23, the prime must specifically […]
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It’s tax season again, so it’s time to pay the piper.
Contractor Wins when Government Reconsiders Accord
Ever had buyer’s remorse or second-guessed a decision? When the U.S. Army Corps of Engineers did that, a Contractor won its claim for time and money.
On a flood control project near Nogales, Arizona, severe flooding […]
Claim Certified with Digital Signature Deemed OK
The law is not a trend-setter. It doesn’t readily change or adapt to tech. So, a commonplace practice in business became a dispute when a claimant digitally certified a claim under the Contract Disputes Act.
Jonathan J. Straw
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Partner | KraftsonCaudle.com
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