Contract Changes and Claims: Directed Changes

Directed changes are acknowledged by the owner or the prime contractor issuing them to cause a change in the subcontractor’s time or cost of performance. Generally, they arise out of some form of notice of change, change directive or other formal written communication directing a change in the scope of subcontract work. Once such a notice is given, no separate notification is required by the subcontractor in response since the owner or prime contractor already has acknowledged the fact that a change has occurred. However, before proceeding with the changed work, the subcontractor carefully should analyze the subcontract document to determine the subcontractor’s rights and responsibilities. The following articles will set forth action steps to help a subcontractor structure this analysis. ASA’s Contract Changes and Claims is a series of articles providing tips for the management of changes and changed conditions and how to realize full adjustment to the contract price or contract time.