United States
Hong KongChange orders, claims and delays
A change order is a written amendment to price or time signed by both parties. A claim is an unresolved assertion of entitlement. Delays are excusable or not, and compensable or not, and the two questions are separate.
Where most construction disputes actually live, and a category the exam treats carefully.
Change order against claim
A change order is agreed: both parties sign, price and time are settled, the contract is amended.
A claim is not agreed. It is an assertion of entitlement the other party has not accepted, and it follows whatever dispute process the contract sets out.
A contractor told verbally to proceed, who does the work and invoices later, is in a claim rather than a change order. Most contracts require written direction, and the exam expects you to know that doing the work first weakens your position.
Two questions about every delay
Is it excusable, meaning the contractor gets more time? And is it compensable, meaning the contractor also gets more money?
| Delay type | Time | Money |
|---|---|---|
| Owner-caused | Yes | Usually yes |
| Unusual weather beyond what was foreseeable | Usually yes | Usually no |
| Contractor-caused | No | No |
| Concurrent, both parties | Often yes | Usually no |
Excusable and compensable are separate questions with separate answers. Weather is the classic case where you get time and not money.
Notice provisions
Most contracts require notice of a claim within a stated period. Missing it can waive the claim entirely regardless of merit.
That is a harsh rule and it is enforced. Notice first, quantify later.
Constructive change
Where the owner's conduct effectively directs extra work without a formal change order - an inspector demanding more than the specification requires, for instance.
It may found a claim, and it is why contemporaneous records matter.
Common questions
What is the difference between a change order and a claim?
A change order is agreed and signed by both parties. A claim is an unresolved assertion of entitlement.
What is an excusable delay?
One entitling the contractor to more time. Whether it also entitles them to money is a separate question.
Does unusual weather get you money?
Usually time but not money, provided it was beyond what was reasonably foreseeable.
What happens if I miss a notice deadline?
The claim can be waived entirely regardless of merit. Notice first, quantify later.
What is a constructive change?
Owner conduct that effectively directs extra work without a formal change order, which may found a claim.