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Change Orders Questions
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Change Orders
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"Schedule of Values" was attached to A101 form as "a Exhibit". The Schedule of Values is composed of 3 columns like Division#s-Work descriptions-Prices. For example, Division 1. General Conditions / 1. Job site clean up / $12,000.00 etc.
The Schedule of Values shows total 18 Divisions, 55 Work Descriptions, 59 Prices and 6 Exclusions. Actually the work descriptions don't include all indications drawn and written on drawing documents. Contractor says I don't have to install any items not including in the schedule even though the drawing specified materials like LARR #. For example, Porcelain-Paver on roof deck, Trash Chute etc. I guess the Schedule of Values shall be used as a payment method only instead of work scope or change order if General did not indicate the items in Exclusion.
CaliforniaWe are a contractor just finishing a commercial T&I and getting little to no response on payment of contract and change orders. Can we file a lien?
ArizonaIs the AIA Change Order Contract in working days or calendar days?
WashingtonI am an Electrician. The customer wanted to do the work. The work went from 6 feeder terminations to 6 terminations plus a new swimming pool. After the rough inspection the inspector wants a final on the swimming pool. This requires more work and trips for the job. When I let someone o their own work it is a minimum of 3 trips, i charge $50 a trip. Customer said he was ready for inspection I inspected and he was'nt ready requiring return trip plus trip for final if he's got it right. He's replying to emails or text messages. what can i do?
Indianaelectrical subcontractor wants to change order us 22,200 on a 120,000 dollar contract but we cannot pass the cost on to the customer what do i do
NevadaDoes the builder get paid in advance for a change order or after the builder completes the change for the agreed price?
OhioWe are contracted with a door manufacture under a GC on a Navy installation, and our contract is with a subcontractor of the GC, and in our contract we have standby and delay times and have over $70k in change orders for being delayed and put on standby numerous times, and the company we are contracted with is stating they don't have to pay us unless the Navy pays them, even though they agreed to our terms for the standby time were disclosed and greed out the gate and we are NOT pay hne paid, our contract is NET 30. We do have a copy of his bond on this job. Is he still liable even if the Navy or the GC don't pay him? Looking for a local attorney to have for these questions too.
FloridaCan a homeowner say the contractor is responsible for additional work by saying the plans/blue prints under "General Notes"and are considered the contract if the contractor has a detailed scope that does not indicate other ?
CaliforniaHomeWise Builders is handling a remodeling job for the Willis Property owners. The Willis Property is now unwilling to pay milestone payments per the signed agreement stating that they want more things done and wanting documentation showing where monies have been applied, etc. They are contesting change orders that were requested by them and are not willing to pay pricing given for work completed. We have subcontractors that are not able to be paid due to their unwillingness to pay invoice(s) released. Notified early this week that they are making amendments to the original contract in order to pay. Need assistance in figuring out next steps - can we stop work moving forward and push that they need to pay for work completed?
LouisianaNew home build in Maine. Financed through a construction loan. Home is almost finished and I just got a final invoice and it is significantly more than the original estimate (which is how much my loan is for). We have made some changes along the way but never signed any change orders. The contractor gave me verbal prices for some of the changes and others I have the prices in text or email. The final invoice shows these as much more than what he told me they were going to be. I had money set aside to pay him for the overages based on what he told me they were going to cost. But now there is a difference of about $50,000 and I don't have that money laying around. Basically I budgeted for the changes I made throughout the build based on the prices he gave me. If I knew everything I chose to add to was going to be double what he told me it would be I wouldn't have added anything. What are my options?
Mainewe are a subcontractor on a commercial Job we have a signed contract with the builder, however they requested us to perform extra work not included in our contract. they requested it via email and they approved the proposals we sent for the extra work. however they never created an official signed change order. we performed the work and now they refuse to pay for the extra work. we have proof they requested the work to be completed and proof they approved the totals we said they would charge however everything is in email not in official signed change orders. can we legally place a lien on this even though it was not formally approved only informally?
TexasIs it legal for a general contractor to default on agreed upon amendments to the original contract that were made with text proof, such as labor draw points and change orders for additional work to be done?
TexasI am having a disagreement about a proposed change order the GC has submitted to me (related to framing and drywalling 3 ft walls at the top of the stairs). My view, supported by the initial contract scope of work, is that this charge (about $5000) is unwarranted and the work was part of the original scope. If this work is not performed, it will cause other delays of the broader job and be much more expensive for me to address after the rest of the contract is done. My GC knows this and is playing hardball. It makes most sense for me to sign off on the change order and challenge it post-contract (e.g., through small claims court). What is the best way to handle the change order, yet reserve my right to other recourse down the road? I don't want to unncessarily annoy my GC by using any language that would threaten legal action, but I want to ensure that the change order that I sign includes language that reserves my legal options. What are some specific ways I can do this?
WashingtonBackstory: In early 2020 we were approached about doing the Electrical portion for a New Construction Maintenance Facility County Project in Texas. The GC had already received Electrical Bids from other Contractors (so he said), and since we were doing another similar project for GC asked if we could do job for $xx,xxx amount? We told him we had to see plans and do take off, cost analysis, etc. GC tried to press Owner/Master Electrician to commit to cost saying that it would be an easy job, but we insisted on seeing plans before committing to anything.
When I got copy of plans I immediately noticed issues. Sheets were missing that contained the One Line Information (Electrical Service Size, Type, Etc.), as well as the Service Site Information which gives details for the Underground Service (Conduit, route, distance, etc.). I informed GC that I needed these sheets before I could give accurate cost analysis, but while he is getting them I will do the Take off on Gear & Lighting.
The next day when I submitted Schedules for The Gear & Lighting to the appropriate vendors, I was contacted back by three separate vendors saying that we did not have the correct plans for this project, the ones I submitted were rejected, and had been updated with new plans. I immediately informed the GC of this claim, and submitted an RFI stating we needed correct plans, as well as missing sheets with One Line.
After about 3 weeks of multiple requests, the GC informed me that these are the plans we are to use, and ONLY these plans. I relayed to my Lighting Vendor the directions, received my Quotes from them, crunched the numbers, without the specs for Site Service & Meter, and submitted Estimate which included only Interior Power and Lighting from the sheets I had. We were informed the the Service Design was having to be redesigned by Power Company, and once approved, we would be provided to issue a Change Order request.
After submitting my Estimate to GC, he asked if I could sharpen my pencil a little, dropping about $3,000 in Estimate? He also made the comment that if needed, I may be able to make a little back from the Exterior Site & Service Change Order that would be submitted when plans became available. I looked it over and agreed, bringing it down to below the figure he had in mind. Contracts issued, signed and returned, material submittals completed, and then the wait.
Six months later, every Sub Contract receives a group email informing us that we all had been using the wrong plans. We were given access to correct plans and the Electrical was still missing the One Line & Site Diagram for the Service. Fortunately, I did not need to alter my estimate since the Lighting Vendor had submitted cost for the correct plans that they had. I did need to change my count on a couple fixtures, but the count was lower, so really didn't affect anything for me.
As work kicked off I made continual requests and reminders that we didn't have the design and layout for the Service, and this could potentially have dire consequences for the projected timeframe due to lead times needed to get Change Order Submitted and Approved, and I would not place orders for Materials until I knew we had approval.
At the end of October 2020 we receive the One Line and Service Site Sheets. We are about 50% complete on the original Interior work. I prepared the Change Order Immediately using EBM (an Estimating Program) and National Averages built into the Program. The Change Order was higher than the original Estimate (original$50k, change order $65k), since Change Order had over 330' of Trenching, multiple runs of 4" Schedule 80 Conduit totaling over 650', #500 CU Wire totaling 330', and #4/0 CU Wire totaling over 720'. Change Order Submitted to GC on 11/3/2020. After a few more changes made by Architect, I submitted the final Change Order on 11/18/2020. Sometime after that we were informed that it had been submitted and was under review.
On December 15, 2020 we were informed the Change Order had been approved and was asked to get materials ordered. I informed the GC that I would need some form of acceptance of Change Order, even if it had to be a Letter of Intent before I could place the orders. During this time there was some talk with Master Electrician/Owner about some of the work on Change Order should have been included in the Original Estimate. I was not included on these conversations, even though I am the Sole Estimator, and only person that worked on the Estimate. The ME/Owner got GC on phone and conferenced me into the call. I reinforced that I did not include any work that pertained beyond the canopy of the building because I did not have Plans which specified the design of service, size, or route. I did not know the length of service conductors from Transformer to Panel inside the building, so therefore could not provide accurate cost.
I was told that there was a sheet which showed potential routing of Utilities (Water, Sewer, & Electrical) in the Civil Drawings section, so I should of included at least part of the Trenching and PVC Conduit in original bid. I told them that I had informed them over and over that I could not provide cost without the One Line & Electrical Site Plan, and the Civil Drawings were not detailed nor accurate to existing conditions when doing the walk through. My Change Order included Scope Of Work which explicitly detailed the Trenching & Conduit in the work.
On 01/21/2021 we were informed that the Change Order was Issued to GC. The same day I received Contract for Change Order in the amount of my Estimate. 4 hours later I received another email stating that the first Contract for Change Order was Voided, and a new Change Order Issued with a $15,452.18 deduction for scope not required. The contention is that since Civil Drawings had an approximate routing of utilities, I should have included in my Original Lump Sum Bid. Therefore, they were taking my itemized Change Order, applying my cost formula per square foot to the Lump Sum Bid, and deducting that as a charge back.
After multiple emails disputing there claims, they are know having no communication with me, and pressuring the ME/Owner to sign the Contract.
Now, if you are still tracking with me, here is the kicker!
Through Open Records available I have discovered that GC Altered my Change Order before submitting to County. He raised my costing from $65,299.24 to $83,325.04, an increase of $18,025.80, then applied the Contracted Allowable Markup for the GC when submitting Change Orders in the amount of $9,585.79, for a total increase of $27,611.59 above my Change Order Amount. Then, if you add in the amount of the deduction which they are trying to impose, the Gross Profit the GC is trying to gain off my $65,299.24 cost is $40,899.37.
Main Question--Is it legal for the GC to take my Change Order Estimate, alter the cost, submit it as if it is my cost to the County, then pocket the difference?
Thank you!
Texashello ,
Say If was working for a builder in scheme contract where appointed on an hourly rate. is the builder able to holding a sum of money and then after a letter of demand claiming they have to carry out reworks.
is the builder entitled to hold this sum and if there is reworks should the contractor be given the opportunity to rectify the works?
California