Contractor Owed Liquidated Damages Where it Failed to Timely Seek Change Order for Owner Caused Delay
ConstructionRisk.com Report Vol. #14, Issue #4
See article in the following topic indices:
Change Orders,Claims Procedures,Contract Procedural Requirements,Delay,Liquidated damages,Time Limit
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Where a general contractor failed to follow contract procedures to submit a time extension request, a city was entitled to collect liquidated damages from the contractor despite the fact that the city caused the delay. Since the contractor failed to follow the procedures to claim an extension of time, the trial court would not even [...]
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Contractor Cannot Recover for Extra Work Performed without Change Order Approved by Authorized Officials
ConstructionRisk.com Report Vol. #14, Issue #2
See article in the following topic indices:
Apparent Authority,Change Orders,Contract - Notice Requirements,Design-Build,Estoppel,Implied Contract,Quantum Meruit,Unjust Enrichment
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A design-build contractor that entered into a fixed-price contract to upgrade the heating, air conditioning and ventilation (HVAC) system in college dormitories satisfactorily performed all the work it was contracted to do, but also performed significant additional work to correct problems with the existing HVAC system that had not been identified at the outset of [...]
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Managing Contract Changes
Ambiguous Specifications,Change Orders,Contractor Claims against Project Owner,Delay,Managing Contract Changes,Specifications (Defective)
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by J. Gerard Boyle Claims Analyst and Senior Project Manager Revay and Associates Limited – Toronto Shortly after work commences on design-bid-build projects all over this country, it can be predicted with reasonable certainty that the Owner and/or Consultant will confidently announce to the General Contractor (GC) and its subtrades: “There will be no contract [...]
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Contractor Suit Dismissed for Failure to Follow Claim Procedures of Contract
Change Orders,Claims,Contract Procedural Requirements,Notice Requirements,Time Limit
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A homebuilder’s lawsuit against a city and its architectural firm for refusing to grant change orders for additional costs was rejected by a court because the contractor failed to comply with a contractual requirement that it give written notice to the architect of its breach of contract claims against the city before initiating litigation. In [...]
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Failure to Request Change Order Bars Contractor Recovery for Excess Units
Change Orders,Notice Requirements,Unit Pricing,Unjust Enrichment
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Contractor that performed significantly greater unit quantities of paving work than anticipated was barred from an equitable adjustment because although it adequately documented the increased quantities and costs, and the project owner was aware of the same, the contractor failed to submit a change order for approval by the owner in advance of incurring the [...]
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Waiver and Release Language in Change Order Bars Further Recovery
Change Orders,Request for Equitable Adjustment,Waiver and Release
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Contractor that entered into a number of change orders for additional payments from the project owner (U.S. Navy) was barred from claiming entitlement to additional compensation when the Government subsequently terminated since each of the change orders contained language releasing the Navy as to the matters covered by the change orders. In J.C. Equipment Corp. [...]
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Testing Your Ethical Barometer
Change Orders,Design-Build,Ethics
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By: Michael Loulakis The barrage of corporate misdeeds reported over the past year makes one wonder how things could have possibly gotten so out-of-hand. How could Enron’s management get away with “cooking the books” and reporting phantom revenue so easily for so long? Why didn’t someone at Arthur Andersen look at the big picture and [...]
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Equitable Adjustment Allowed for Deductive Change Despite Contractor’s Unbalanced Bid
Bidding,Change Orders,Deductive Change,Request for Equitable Adjustment,Unbalanced Bids
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By: Philip R. White, Esq. Where a public owner issued a deductive change order, it was required to equitably adjust a contract despite the absence of an equitable adjustment clause in the contract, despite the absence of specifications or applicable public contracts law, and despite the fact that the contractor’s bid was unbalanced . In [...]
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Differing Site Conditions and Lost Productivity Entitle Contractor to Additional Compensation
Change Orders,Damages,Differing Site Conditions,Lost Productivity,Reliance,site information reliance
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A construction contractor was entitled to change orders where it encountered differing site conditions that required the use of form footings instead of trench footings as has been planned. The plans and specifications incorporated into the contract contained affirmative indications that the subsurface conditions would be consistent with the use of trench footings. The owner [...]
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No Compensation owed to contractor who performed extra work without written authorization
Additional Services,Change Orders,Contract - Notice Requirements,Notice Requirements of Contracts
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It is surprising how many cases there are in which a consultant or contractor performs additional services or work for an owner without first adhering to notice and approval requirements of the contract. Failure to obtain authorization for additional work from the owner’s designated representative can, and often does, bar entitlement to be paid for [...]
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