Construction Payment Disputes: Addressing Change Orders, Extra Work, and Other Costs

Modifying AIA Article 7; Oral Changes; Cardinal Change; Defective Plans; Additional, Unauthorized, or Nonconforming Work

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, November 12, 2019

Recorded event now available

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Program Materials

This CLE webinar will address advanced payment issues in construction projects, including change orders and extra work. The panel will provide practical guidance to construction practitioners for differentiating between real versus perceived changes; undocumented oral change orders; changes due to defective plans and specifications; the effects of previously unknown site conditions; additional, unauthorized, or nonconforming work; changes because of external factors; and change order impact costs. The panel will also discuss the latest American Institute of Architects (AIA) standard contract documents--such as Article 7 of the AIA A201 General Conditions of the Contract for Construction--and best practices for amending these standard provisions to address payment issues.

Description

No architect or engineer ever produced a perfect set of plans and specifications. Every construction project is different, and each is built by a combination of contractors. Work is often affected by the unforeseeable: inclement weather, subsurface conditions, new building codes, or unavailability of materials. Change orders exist because of the dynamic and complex nature of construction projects.

Nearly all construction contracts have a "changes in the work" clause that establishes procedures for revising a contractor's scope of work. A "changes in the work" clause is an essential part of any construction contract and allows the parties to agree in advance to a process for changing the work and pricing those changes. But innovative and tailored approaches to these clauses and related issues can significantly maximize client return.

All major standard form agreements address changes in the work, usually as part of the general conditions. For instance, in the AIA-A201 2017 changes are addressed in Article 7. The standard form agreements all assume change orders are written documents. Custom contracts often explicitly state there can be no oral modification of the contract and only signed, written change orders will bind the parties. But despite their widespread use, AIA standard provisions often fail to protect the interests of particular clients.

Listen as our authoritative panel guides construction practitioners in differentiating between real versus perceived changes and addressing undocumented change orders; changes due to defective plans and specifications; the effects of previously unknown site conditions; additional, unauthorized, or nonconforming work; changes because of external factors; and change order impact costs. The panel will also discuss the latest AIA standard contract documents and best practices for amending these standard provisions to address payment issues.

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Outline

  1. Overview
  2. Real vs. perceived changes
  3. Undocumented oral change orders
  4. Changes due to defective plans and specifications
  5. Previously unknown site conditions
  6. Additional, unauthorized, or nonconforming work
  7. Change by outside forces: market shifts, zoning issues, etc.
  8. Change order impact costs
  9. AIA standard contract provisions
    1. Drafting strategies
    2. Best practices
  10. Conclusion

Benefits

The panel will review these and other key issues:

  • What are best practices for addressing change orders, extra work, and other payment issues?
  • What is missing in AIA Article 7?
  • What are best practices for modifying and amending these forms?
  • In what ways are AIA documents incomplete?
  • How can counsel help clients differentiate between real versus perceived changes?
  • What are strategies to avoid disputes over undocumented oral changes?
  • What are best practices for ensuring project-wide consistency?
  • What practical drafting strategies will reduce the likelihood of disputes and offer significant advantages if disputes arise?

Faculty

Bondy, Jonathan
Jonathan Bondy

Member
Chiesa Shahinian & Giantomasi

Mr. Bondy’s practice is concentrated in the field of commercial litigation, with a focus on construction, surety...  |  Read More

Schaap, Michelle
Michelle A. Schaap

Member
Chiesa Shahinian & Giantomasi

Ms. Schaap practices primarily in cybersecurity and corporate law, particularly as it pertains to construction,...  |  Read More

Other Formats
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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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$297

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DVD

10 business days after event

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