Avoiding Unintended Contract Modifications

Learn to identify which elements of a construction project are likely to be at risk for changes.

All contractors, subcontractors, suppliers, design professionals and others involved in construction projects encounter changes to a construction contract because the construction contract cannot define each and every design issue, differing site conditions, issue with labor including strikes, weather impacts, scope changes by the owner or the owner's client, material shortages, specified manufacturers going out of business and numerous other contingencies. The parties to the construction of a facility do not always understand the implications of these contract modifications and their responsibility when an unforeseen or uncontemplated event occurs. They also do not understand that, by their their action or inaction, they may be unintentionally modifying their contract. This topic helps those involved in construction identify which elements of a construction project are likely to be at risk for changes. The material also explains the method required for addressing these modifications and changes under the terms of the contract, what to do if there is no contract provision addressing these problems and steps to take to avoid unintentionally modifying your contract. The content will also address modifications to a contract which are so impactful that they become a cardinal change to the contract and may relieve a party from future performance.

Learning Objectives

• You will be able to describe waiver and estoppel applications to contract modification.
• You will be able to explain a No Oral Modification Clause and its Impact.
• You will be able to identify the provisions of a contract that are most prone to being modified.
• You will be able to recognize what constitutes a cardinal change to a construction contract.