What document is signed by the Owner and A/E instructing the Contractor to make a change before agreeing on a price adjustment?

What document is signed by the Owner and A/E instructing the Contractor to make a change before agreeing on a price adjustment?

• A. Change Directive
• B. Contract Change Order
• C. Notice of Award
• D. Mediation

Answer: (A)

The signed document between the Owner and the Architect/Engineer (A/E) that instructs the Contractor to make a change before a price adjustment is finalized is called a Change Directive. This document allows for necessary alterations to the work to proceed without delay while negotiations regarding the adjustment in price or time are still ongoing. It serves as an official authorization for the Contractor to start the work associated with the change and ensures that the project is not held up during the discussions. A Change Directive is particularly useful in situations where the need for a change is urgent, or when it is unclear how the change will impact the overall project cost. By using this document, the parties can ensure that work continues effectively while allowing for the typical contractual processes regarding pricing changes to take place concurrently. In contrast, a Contract Change Order is used after an agreement on pricing has been reached, while a Notice of Award pertains to the acceptance of a bid for a construction project, and mediation typically involves resolving disputes rather than facilitating changes to the work.

The signed document between the Owner and the Architect/Engineer (A/E) that instructs the Contractor to make a change before a price adjustment is finalized is called a Change Directive. This document allows for necessary alterations to the work to proceed without delay while negotiations regarding the adjustment in price or time are still ongoing. It serves as an official authorization for the Contractor to start the work associated with the change and ensures that the project is not held up during the discussions.

A Change Directive is particularly useful in situations where the need for a change is urgent, or when it is unclear how the change will impact the overall project cost. By using this document, the parties can ensure that work continues effectively while allowing for the typical contractual processes regarding pricing changes to take place concurrently.

In contrast, a Contract Change Order is used after an agreement on pricing has been reached, while a Notice of Award pertains to the acceptance of a bid for a construction project, and mediation typically involves resolving disputes rather than facilitating changes to the work.