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can a Cardinal Change Doctrine be imposed in a GMP contract?

MissouriChange OrdersConstruction Contract

First and foremost, it is important to outline the issue. Yes, the plan set shows Both site lighting that is clearly in the original GMP and additional lighting “By Others”. Let’s discuss bullet point #5 first; Note: Owners claim they have email traffic from years ago that the GC were required to add lighting around the property, so the Owners claim this should be in the GC guarantee since the company knew. Yes, absolutely is site lighting in the plan design, it is shown in landscaping set, electrical set, architectural set and Civil set. There are Ballard lights and exterior building lights clearly shown and incorporated in the electrical drawings. Therefor any exterior lighting discussion that was called out to be implemented, was installed per plan. ( response to bullet point #2, What lights are being worked on that were required and contemplated in original design requests from city) In addition to the above mentioned exterior lighting, the plans show Pole lights “by others” and in this case the Local Power Company are clearly called out as the responsible party. There are no electrical layouts, details, power requirements, pedestal design, power supply, meter connection, etc. in the plan set that would suggest this was part of the GMP

1 reply

Nov 6, 2019
A cardinal change refers to a dramatic change in the contract specifications. That is, it refers to a situation where the changes proposed or ordered change the original contract so much so that they fundamentally alter the agreement and ultimately change the expected outcome of the agreement. Typically, cardinal changes result from dramatic alterations to the job's scope of work. Based on the nature of "cardinal changes", a cardinal change could really occur under any type of contract, including a guaranteed maximum price contract. Of course, GMP contracts might not always have particularly strict project specifications. Often, as long as the guaranteed max price isn't exceeded, the performance of the contract is left to the discretion of the parties performing the work (to some degree). And, change orders or change directives that don't completely alter the original contract may not be considered cardinal changes. So, where the contract specs are pretty relaxed and undefined, it's possible that the increased flexibility might make it harder to argue a cardinal change. But, a cardinal change could certainly occur when working under a GMP contract. For further discussion on cardinal changes: Cardinal Change Doctrine | When Excessive Changes Are Requested or Demanded.
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