Contractual Right to Make Binding Changes - Assignment Example

Changes According to the article, the owner of the contract has the contractual right to make binding changes. Construction contracts globally state that the contractor should not carry on with any change until when the owner or his representative has legalized it in writing. The instrument used in this change is a written authorization document by the owner. 2. If the contractor does not accept the decision on cost or time adjustment by the architect-engineer or the owner, the issue is reverted to the disputes and claims processes authorized by the agreement.

Often, the contractor is expected to maintain a comprehensive record of costs invested in performing the change so that they can validate its claims (Clough, Sears, & Keoki 136).3. A constructive change in a contract is the consequence of an action, or absence of action of the contract owner or its representative that can be interpreted as a change to the contract despite the fact that the owner might not have offered an official, written change order. For example, when the contractor is verbally directed to perform a different duty, in a different way, or in addition to that set by the contact, the owner becomes responsible for any extra time and cost.4. If a project falls behind schedule, the owner can take a recourse or alternative of ordering the contractor to make up the wasted time without being responsible for additional costs of construction.5. Differing site condition is an unforeseen site condition realized after execution of a contract and differs from the conditions outlined in the specifications and plans or differ from those that should be experienced at the site.

An example is an underground condition that can be discovered in remodeling a structure that existed before (Clough, Sears, & Keoki 140).6. If the contract does not include a changed conditions clause, it can be incorporated in another trust worth doctrine of the government.7. The main reasons why contractors should be concerned about owner-caused delay are that they enable him to recover under the change clause for the extra cost of work. The contractors can also get a profit in the process.8. A no-damage clause in a contract refers is a clause that tries to contractually hinder recovery by a given contractor when project delays lead to damages or additional costs.9. Delay damages are difficult to prove because when the delay damages are hard to measure or are uncertain, it naturally means that it is hard to conclude that a specific damage rate or amount is an irrational projection of what the damages might be.10. The three essential elements of the Revised Contract Amount in a change order: the modifications to be included change in the contract amount, and the signatures of the prime contractor and the owner. 11. “The Changes Clause in Federal Construction Contracts” This article tries to put forward that the Changes clause is possibly the most essential clause in the construction contracts of the federal government.

It gives the contracting group operating suppleness and acts as a vehicle to process numerous types of claims against the regime (Nash Jr, Ralph C., and John Cibinic Jr 908).