Lecture 17

1
Lecture 17 Contract Modifications

• CEE 474 Engineering Project Management

2
Contract Modifications

• Modifications, or change orders, are made to
  contracts to change the price, time, delivery,
  scope, or quality required of a contract.

3
Modification Categories

• Design error
• Differing site condition
• Value engineering
• Criteria change (necessary for construction)
• User/owner request
• Novation (name change)
• Default (adverse weather, strikes, acts of God,
  embargoes, etc.)
• Termination for convenience (Government only,
  otherwise it would be breach of contract)

4
Price and Time

• The rule is to leave them as you found them.
  The contract modification should provide an
  equitable adjustment to contract price and time
  such that the adjustment for price time
  reflects the actual change in price for the
  contractor to perform the changed work and the
  time is adjusted to reflected the difference in
  time it takes to perform the changed work.