PJM- Change order and Claims

project management
1

Hi everyone,

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

Thanks!

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2

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

3

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!

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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.

Best,

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@cat.heard9 can you clarify?

6

@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.

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7

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?

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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:

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

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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!
-Darion

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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:

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

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