White Paper

Change Order Management

 
An owner wants to know what it’s going to be “on the hook for” with respect to all project costs. The contractor wants to be properly compensated for work which is in addition to its original contract scope. Changes during the course of performance will introduce direct costs capable of calculation plus other expenditures not as easily identifiable. In attempting to reach a common ground (i.e., a bilateral change order), the owner typically considers the change order to encompass all time and cost elements and thus, the issue is put to bed. From the contractor’s perspective, he may not know or feel that all time and cost aspects are known at that point in time or have been addressed. Therein lies the dilemma. It may be difficult to determine whether all time and costs involved in a change or series of changes have been fully addressed, and therefore, claims arise for costs that are associated with a change which the contractor does not believe were covered by the change orders.

Agenda

Reservation of Rights vs. Full and Final Settlement
What is an accord and satisfaction?
Cumulative Impact Claims
Three elements required by most contract and tort claims

Faculty

John E. Clark

Clark Guldin Attorneys at Law

John E. Clark, Esq.

  • Principal at Clark Guldin, Attorneys at Law
  • Formerly general counsel of New Jersey Schools Development Authority
  • Represents real estate owners, developers, builders and designers throughout all phases of the development and construction process
  • Advises clients concerning construction of facilities for hospital and health care, colleges and universities, K-12 schools, commercial office, retail, industrial and manufacturing, and residential in both the public and private arenas
  • Represents clients concerning construction disputes, including construction claims and construction defects, involving mediation, arbitration and litigation
  • J.D. and B.A. degrees, Phi Beta Kappa, Rutgers University
  • Can be contacted at [email protected]

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