PJM- Change order and Claims

Hi everyone,

One quick question, is change order a one type of the claims? What’s the relationship between those two?


1 Like

Hey @coachjasongolub or @cat.heard9 can you answer this question?

hey @whuang, can you clarify the two things you’re asking about? I see ‘change order’ and ‘claims’. Can you explain what you mean by ‘claims’? Thanks!

Thanks for reply! I am just wondering is ‘change order’ a type of ‘claims’?

For claim i mean the definition in A201 Article 15 claims and disputes.


1 Like

@cat.heard9 can you clarify?

@whuang- @cat.heard9 - a change order can refer to added or revised scope. Usually this would refer to a General Contractor’s change in scope or work resulting in a positive (additional cost) or negative (credit) to the owner. Sometimes consultants use the phrase Change Order as a reference for additional services.

Claims would be a claim against a party’s insurance for damages or errors and omissions.

1 Like

I had a quick question about change orders and thought this might be a good spot to fit my question in following the thread. Who else could issue change orders besides the GC and do change orders only show up in Construction phase?

Hi @mwang8120 ,

Let’s first revisit what exactly change orders are. A change order is an agreement to the contract scope, time, or amount agreed upon by the owner, contractor, & architect.

This is document G701–2017. Per AIAcontracts.org:

We can read A201 to understand more about what change orders are and how they work. Check out Article 7, Changes in the work:

So, the architect prepares the change order, which is then signed by all parties. They can occur at any time after the contractor is on board and has agreed to build a specific building for a specific price. In design-bid-build this would be anytime after the project is bid and A101 is signed by the owner and contractor. In CM-at risk this would be anytime after the contractor has given their GMP. So, not necessarily during construction, but oftentimes.

Hope this helps!

If anyone is curious about change orders the AIA has also put out a few super helpful videos on them! Check them out at the links below:

Noted @coachdarionziegler , thanks for clarifying and sharing these resources - extremely helpful!

1 Like