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Chapter 18
The need for changes and the frequently complex contract methods for
implementing them in construction contracts is an essential attribute of the
construction contract.
While changes are generally associated with the scope of work, the process is
also used to address time. Students should be made aware of this, as a prelude
to Chapter 20.
The Watson case introduces the change mechanism in the context of a
consumer purchase of a home that is being built. Undoubted it has elements
which are not part of a more complex commercial or industrial contract but the
principle is the same. The court recognizes the importance of cost control to the
owner. The owner wants to rely upon the contract price as a measure of its
financial exposure. This is a constant problem for lenders as well.
The Watson case has been troublesome. The court manifests hostility towards
Yet the attitude of the court in the Watson case is not atypical and reflects
law’s concern for fixed price contracts which turn out to be much more expensive
than the owner could reasonably anticipate.
The Chapter Question #5 asks the students to think of an alternative to the
changes process on small projects (like that that involved in Watson). This is a
good question for a class debate.
Answers to Chapter Questions
1.) What is the fundamental difference between changes that are initiated by the owner
and a changes claim brought by a contractor?
2.) What are the three categories of changes?
3.) What are the three ways changes are accomplished according to the AIA A201–2007
Document, Article 7?
4.) In the case Watson Lumber Company v. Guennewig, what were the essential elements
the contractor had to prove to win his claim of changes?
5.) What strategy might a contractor employ on a small project to cover small extras,
rather than comply with the excessively formal requirements set forth by the court
in the Watson case?
6.) What three things are involved in the changes process?
7.) On federal projects, which party has authority to enter into and modify contracts?
8.) What are the three issues in regard to waiver questions?
9.) What are the two situations in which a cardinal change can be invoked?
10.) What are the two components of a constructive change?
