Revising Construction Payment Provisions: Addressing Change Orders, Extra or Nonconforming Work, and Other Costs

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

A live 90-minute CLE video webinar with interactive Q&A


Wednesday, May 12, 2021

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, April 23, 2021

or call 1-800-926-7926

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/changed site conditions; additional, unauthorized, or nonconforming work; changes because of external factors; and change order impact costs. The panel will also discuss the current American Institute of Architects (AIA) standard contract documents--such as Article 7 of the AIA A201 2017 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, subcontractors, and trades persons. Work is often affected by the unforeseeable, such as inclement weather, subsurface conditions, labor issues, new building codes, or availability of materials. Change orders exist to address many of these unforeseen and unforeseeable items.

Nearly all construction contracts have a "changes in the work" or "change order" clause that establishes procedures for revising a contractor's scope of work and which usually provides for extra money and extra time in connection with such changes. A changes in the work or change order 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 without invalidating the contract as such changes are made. In light of this, a little time exploring and revising such clauses before entering into the contract could go a long way toward obtaining the extra time and money associated with costly construction contract changes.

All major standard form agreements address changes in the work, usually as part of the general conditions. The current AIA AIA-A201, amended last in 2017, addresses changes in Article 7. The standard form agreements all assume that change orders are written documents. Custom or manuscript contracts often explicitly state that there can be no oral modification of the contract, and only signed, written change orders will bind the parties. However, despite their widespread use, AIA standard provisions often need to be tailored to the specific project at issue and particular circumstances of the parties.

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 current 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

Benefits

The panel will review these and other key issues:

  • What are best practices for addressing change orders, extra work, and other payment issues?
  • Discussion of AIA Article 7 and how it can be changed
  • What are best practices for modifying and amending these forms in an attempt to avoid change order disputes during the project?
  • In what ways can the AIA documents be changed?
  • How can counsel help contractor 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 and/or best practices in the field will reduce the likelihood of disputes and offer significant advantages if disputes arise?
  • What role "notice" plays in the change order process

Faculty

Lambert, Jason
Jason S. Lambert

Partner
Dinsmore & Shohl

Mr. Lambert represents clients including contractors, subcontractors, material suppliers, financial institutions, and...  |  Read More

Volack, Richard
Richard R. Volack

Partner
Peckar & Abramson

Mr. Volack’s practice encompasses dispute resolution through mediation, arbitration and, when necessary,...  |  Read More

Attend on May 12

Early Discount (through 04/23/21)

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Early Discount (through 04/23/21)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include program handouts.

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