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).