Do you have any suggestions with regard to dealing with construction change directives per AIA 201 when the contractor and the Owner cannot agree on the pricing for the change?
1 reply
May 27, 2020
So a construction change directive is the mechanism in the standard AIA contract for implementing a change, which is typically an add to the scope or a different design. It is the mechanism that the parties use when they cannot agree on the price for that change order. One thing that’s critical when you are operating under a construction change directive or any sort of interim process before the change order is approved, is to make sure you track costs so that you have some basis for payment later after the work is completed. You can do that with a separate cost code or by TNM tickets. There’s actually a number of different ways that you can accomplish this, but you need to segregate the costs by some method so that you can show the owner or the person who’s authorizing the construction change directive, that your costs for the change are different from your cost for the base scope work.