Contractor Not Entitled to Recover for Extra Work in Absence of Written Authorization

Virtually every construction contract contains a changes clause that permits an owner to make changes to the work or accommodate unanticipated changes and provides a mechanism for the contractor to be paid for such changes. Usually, the changes provision requires the contractor to receive a written change order, or at least written authorization, prior to proceeding with the work or risk not being paid for that extra work. Likewise, bid documents usually require any interpretations be in writing in order for them to be binding. Unfortunately, far too often contractors bid on a job or perform extra work without first obtaining the written clarification or authorization. While some owners may pay for the work anyway, they are usually not required to do so in the absence of a waiver of the contract requirement. In Seneca Valley, Inc. v. Village of Caldwell, a contractor who did not receive the appropriate written authorization prior to performing extra work was denied recovery for that work.