Chapter 12 Change Orders

Question 1

Changes made through addenda

Answer 1

Become part of the bid and automatically included in the contract.

Question 2

Change Clauses include what elements?

Answer 2

• O’s right to make changes w/in scope of K
• C is obligated to perform
• Change must be in writing and signed
• An adjustment to K price and/or duration will be assessed

Question 3

Changes made by O will?

Answer 3

Become a K modification.

Question 4

Changes must be described with what?

Answer 4

Drawings, and specs

Question 5

Change order

Answer 5

Whenever a change is issued by the owner with specific directive
(Mini K)

Question 6

Field Change

Answer 6

Minor change that has no impact on the duration or the amount of the K and is often authorized by field personnel

Question 7

What must C include in proposed price of a change?

Answer 7

Labor, taxes, materials, subs, equipment, insurance

Question 8

Formal change order

Answer 8

Issued if the O finds the the price quote acceptable. Otherwise O may ask to reconsider price

Question 9

Abandonment

Answer 9

Change is too drastic/ exaggerated & K is Void.

Question 10

Liquidated damages

Answer 10

Damages that were designated during the formation of the contract in order to compensate

Question 11

Cardinal Changes

Answer 11

Changes not within general scope of the the Original K.

Question 12

Two Issues that define Cardinal Change

Answer 12

• Essential Identity of the project is altered.

- Method or manner of performance is drastically changed.

Question 13

Where are Cardinal changes a problem?

Answer 13

Public works

Question 14

What should be done if a change is considered Cardinal?

Answer 14

• C should inform owner ii writing
• If owner insists, the C should proceed under protest
• If protests and succeeds in declaring the change Cardinal, damages may be claimed for breach.
• If C does not protest nothing will be done

Question 15

Main reasons why C may not want to perform Cardinal change

Answer 15

• No expertise to perform change
• Bonding issues
• Financial resources

Question 16

Who has Authority to issue change orders?

Answer 16

Either O alone or O and architect Together.

Question 17

True or False

AIA does not allow the architect alone to approve changes. O’s signature must appear on change orders.

Answer 17

TRUE

Question 18

Abandonment

Answer 18

Change is too drastic/ exaggerated & K is Void.

Question 19

Liquidated damages

Answer 19

Damages that were designated during the formation of the contract in order to compensate

Question 20

Cardinal Changes

Answer 20

Changes not within general scope of the the Original K.

Question 21

Two Issues that define Cardinal Change

Answer 21

• Essential Identity of the project is altered.

- Method or manner of performance is drastically changed.

Question 22

Where are Cardinal changes a problem?

Answer 22

Public works

Question 23

What should be done if a change is considered Cardinal?

Answer 23

• C should inform owner ii writing
• If owner insists, the C should proceed under protest
• If protests and succeeds in declaring the change Cardinal, damages may be claimed for breach.
• If C does not protest nothing will be done

Question 24

Main reasons why C may not want to perform Cardinal change

Answer 24

• No expertise to perform change
• Bonding issues
• Financial resources

Question 25

Who has Authority to issue change orders?

Answer 25

Either O alone or O and architect Together.

Question 26

True or False | AIA does not allow the architect alone to approve changes. O's signature must appear on change orders.

Answer 26

TRUE