Change Order Clauses in Standard Contract Documents
Publication: Practice Periodical on Structural Design and Construction
Volume 21, Issue 2
Abstract
This paper provides details and a comparative review of change-order-related clauses in major standard contract agreements. The information from the review is used to highlight the impact of the contractual agreements and their general conditions on change order procedures and pricing. The main categories of analysis include the change order process, direct and overhead cost items, and overhead and profit practices and percentages. Four sets of standard contract documents are reviewed: American Institute of Architects (AIA) A201-2007 and A401-2007, ConsensusDocs 200 and 750, Engineers Joint Contract Document Committee (EJCDC) C-700 and C-523, and Canadian Construction Documents Committee (CCDC) 2-2008/Canadian Construction Association (CCA) 1-2008. The comparative review points to the prevailing confusion and conflicts related to change order procedures and pricing among owners, designers, general contractors, construction managers, and subcontractors.
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Acknowledgments
The funding for this work was provided by ELECTRI International, the research foundation of the National Electrical Contractors Association. The support and input of ELECTRI’s industry task force members are gratefully acknowledged. In addition, contributions by Mr. Jack Mumma, university contract officer, and Mr. Joseph Diffendal, former graduate student at Michigan State University, are also gratefully acknowledged.
References
AIA (American Institute of Architects). (2007a). “General conditions of the contract for construction.” A201-2007, Washington, DC.
AIA (American Institute of Architects). (2007b). “Standard form of agreement between contractor and subcontractor.” A401-2007, Washington, DC.
AIA (American Institute of Architects). (2015). “History of AIA contract documents,” 〈http://www.aia.org/contractdocs/AIAS076671〉 (Aug. 14, 2015).
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CCA (Canadian Construction Association). (2008). “1-2008—Stipulated price subcontract,” 〈http://www.cca-acc.com/en/industry-practices/cca-documents〉 (Aug. 14, 2015).
CCDC (Canadian Construction Documents Committee). (2008). “2-2008—Stipulated price contract,” 〈http://www.ccdc.org/documents/index.html#CCDC2〉 (Aug. 14, 2015).
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ConsensusDocs. (2011). “200—Standard agreement and general conditions between owner and constructor (lump sum price),” 〈http://consensusdocs.org/Downloads/Index/8ae56835-671b-49ee-9a2e-a02200ea0d61?name=200_Guidebook_05_07_14.pdf〉 (Aug. 14, 2015).
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ConsensusDocs. (2015). “Building a better way,” 〈http://consensusdocs.org/Catalog〉 (Aug. 14, 2015).
EJCDC (Engineers Joint Contract Document Committee). (2007a). C-523—Construction subcontract on the basis of stipulated price, ASCE, Reston, VA.
EJCDC (Engineers Joint Contract Document Committee). (2007b). C-700—Standard general conditions of the construction contract, ASCE, Reston, VA.
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SDC Associates. (2009). Pricing and negotiating change orders like a pro, San Diego.
Syal, M., Diffendal, J., and Duah, D. (2014). “Change order guidelines for electrical and low voltage contractors.” Project Rep., ELECTRI International, Bethesda, MD. 〈http://www.electri.org/research/change-order-guidelines-electrical-and-low-voltage-contractors〉 (Aug. 14, 2015).
Information & Authors
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Published In
Practice Periodical on Structural Design and Construction
Volume 21 • Issue 2 • May 2016
Copyright
© 2016 American Society of Civil Engineers.
History
Received: Oct 26, 2015
Accepted: Nov 19, 2015
Published online: Jan 8, 2016
Published in print: May 1, 2016
Discussion open until: Jun 8, 2016
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