Home>Levelset Community>Legal Help>AZ Commercial Construction Shell project with Tenant Improvement of same site change ordered in-Do each have their own completion date or project as a whole>

AZ Commercial Construction Shell project with Tenant Improvement of same site change ordered in-Do each have their own completion date or project as a whole>

WE currently have this similar situation in AZ, WI, IL so if I can get answered based on all 3 states... We are the GC. Original contract is for the shell of the building or buildout of original space. The owner has since issued us change orders for the TI (Tenant Improvement of the space) or added another store buildout at the same site. Even though change orders ties to original contract, is this the case for lien purposes? Is each completion their own or as a whole project? Added to this is the fact that additional changes could be for the original contract or the change order of additional TI or buildout.

1 reply

Apr 5, 2018

I think I recall this question from the other day - apologies for my misunderstanding, if so! For the purposes of determining project completion, validly made change orders will typically be taken into account as part of the original contract. While mere punch list or warranty work won't extend a mechanics lien, change orders represent an amendment to the original contract for work - and project completion will occur at the time the entire project (including any added change orders) has been completed. In Arizona, "completion" will occur at the earliest of: (1) 30 days after final inspection and written final acceptance by the governmental body which issued the building permit; (2) Cessation of labor for 60 consecutive days (unless caused by strike, shortage, or act of God). If no building permit was issued or if the improvement isn't subject to final inspections/written final acceptances, "completion" refers to the last date on which labor, materials, fixtures or tools were furnished to the property. In Wisconsin, the lien deadline runs from last furnishing rather than completion of the project. Last furnishing is determined by the last time a party performs work on a project - and again, punch list or warranty work will not extend this deadline, either. However, last furnishing will be continued by validly executed change orders. If an original contract is modified by a change order, last furnishing will occur at the final furnishing at the end of the project (including work done pursuant to change orders). Finally, in Illinois, the time to file a lien is based on the completion of the project. Illinois is a little more specific when it comes to completion and extra work/ change orders. under § 60/7 of the Illinois mechanics lien statute, if extra work beyond the contract is performed, the time to file a lien runs from the completion of that extra work. As an overall theme - change orders that have been properly made and that tie to the original contract will typically be included when determining the completion or final furnishing date for a lien claim. Note, though, that if a separate agreement is made - one that is not contemplated as altering the original contract, but creating a new one entirely - it is conceivable for a situation to arise where work may be considered two different projects.

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