Construction Change Directive when Time is at issue

When the cost is at issue it is clear how a Construction Change Directive to be handled – to keep the schedule on time the Contractor has to proceed with the works and somewhere in the future the cost issue with the Owner will be resolved either through a mutual agreement or a dispute.

When the time is at issue it is not that clear. Let’s say the Contractor says he needs 5 weeks to accomplish a certain task. The Owner and Architect say 3 weeks. The Contractor is ordered to proceed and 3 weeks later the task is not accomplished. The Contractor says – I told you. So, the whole idea of keeping the schedule on time is compromised.

What would be the right way to handle a such scenario?

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Hi @andrew ! @heatherrivera do you mind answering this one?

@andrew

Woof.

AIA G714 is the Construction Change Directive which you made mention of already. The contract time can be adjusted in this, not just the cost. The owner and the architect sign it; and the contractor can if he agrees or he may not need to sign it even to be valid. It’s a directive; not a suggestion. If the contractor does not agree to the CCD, it is referred to as a claim. If the contractor does agree to it, it becomes a change order. Claims can be handled in a number of ways. I’d suggest checking out Article 8 of the AIA B101 for how these are handled.

Hope that helps a bit. Either way you spin it, not a fun situation in which to be found.

Be well,
Heather Rivera, NCARB

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Hi Heather,
Thank you for your explanation.

B101 is the Owner/Architect agreement. Since the CCD implies a change to the construction Contract, it looks like it is a problem between the Owner and the Contractor. I checked A201. The article 15.1.6 Claims for Additional Time says – The Contractor’s Claim shall include an estimate of cost and probable effect on delay on progress of the Work. So, it seems that Claims related to Time are typically resolved through monetizing the effects of delay. Converting time to money so to speak.
Still it is not quite clear how in the case of a Time related CCD the Owner can enforce his Work schedule remaining unchanged (if it is absolutely important for him, of course).

Again, thanks for your answer. These discussions are very helpful.

Andrew

@andrew It is super confusing (that’s why we see many projects seek legal counsel). There is mention of the Construction Change Directive as a valid form of change throughout the A201 (Article 7) which, as you’ve noted above, takes you to Article 15 on claims. There is a subjecrive limit to how much a CCD can do, but whichever way you spin it, the owner is saying, “This is important and needs to be done ASAP.” It is an enforceable action because the Construction Contract lays out what a CCD is, how it is implemented, and what the contractor’s response is to be; and then it is signed. Per 7.3.5, the contractor can make a claim if he doesn’t agree with the time, but he also needs to promptly proceed with the Work.

I hope you get to work Project Management or Construction Administration because you will be awesome at it!

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