Proposed Change Orders Aren't Claims, Court Rules
American Subcontractors Association

Mere submission of a proposed change order will not preserve your right to be paid for extra work, a federal court of appeals has ruled. In a Jan. 8 decision interpreting modified provisions of the American Institute of Architects standard form "General Conditions of the Contract for Construction," the A201-1997, a federal court refused to allow a concrete contractor, working as a prime under the direction of a construction manager, to use its proposed change orders, submitted to the CM, to satisfy the contract requirements for submitting claims to the project architect before bringing a lawsuit. The court ruled that the contractor improperly sought to "conflate the change order process, designed to modify the terms of an agreement, with the claims process, designed for the assertion of rights under the existing terms of an agreement." As detailed in ASA's April 2005 white paper, "Scope Changes and Claims," extra work proposals should always include a deadline for approval, and written claims for extra time and money should be submitted whenever the deadline isn't met. Also, separate, written claims should always be submitted in advance of incurring any extra costs. Read this month's white paper on scope changes and claims at www.asaonline.com. For more information, contact ASA Construction Law & Contracts Counsel Brian Cubbage at bcubbage@asa-hq.com or (703) 684-3450, Ext. 1317.