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Product ID: 401616EAU
 
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Change Order Basics and Best Practices in California

OnDemand Webinar (85 minutes)

Understand how to best implement and administer changes and claims to preserve rights and mitigate exposure.This statewide California topic is intended to provide you with unbiased information regarding change orders. The topic will briefly introduce you to change order basics: what is a change order, what types of changes are most often seen in the construction context, when is a change order properly sought, typical change order disputes and how to price change orders. The content's focus will then shift to an examination of ways to mitigate risk through appropriate contract drafting and review. We will discuss the Spearin Doctrine and the realities of unforeseen and differing site conditions. The topic will then explain and highlight the important distinctions between private and public works. The content will also examine how to best implement and administrate changes and claims to preserve rights and mitigate exposure. The topic will conclude with an examination of the potential risks and pitfalls involved in change order disputes and the means and methods for resolving commercial disputes.

Authors

Dustin Lozano, Hunt Ortmann Palffy Nieves Darling & Mah, Inc.

Agenda

Types of Changes - Actual, Constructive and Cardinal/Material

The Six P's of Change Orders - Prospecting, Preparing, Pricing, Presenting, Performing and Payment

• Typical Change Order Disputes

• How to Price Change Orders

Risk Mitigation Through Contract Drafting and Review

• Clear, Complete and Appropriate Contract Documents

• Both Parties Stand to Gain by Careful Drafting and Reviewing and Contract Administration

• Structured Change Order Initiation/Request/Proposal Process

• Contract Will Generally Include Notice Provision and Time Bars on Change Order Claims

The Spearin Doctrine

• Unforeseen and Differing Site Conditions

• Public Design Bid/Build Owner Bears Greater Risk Than Private Work of Improvement

• Differing Site Conditions

Implementation and Administration of Changes and Claims to Preserve Rights and Mitigate Exposure

Potential Risks, Pitfalls and Resolving Commercial Disputes

• Common Pitfalls and Disputes

• Dispute Resolution

• Even Without Change Order Being Issued, Claims May Be Brought for Work Outside the Contract