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Contractors May Not Necessarily Rely on a Change Clause to Reclaim Work

03-Feb-10

By Dan Glasner, Construction

In general, a party's burdens or obligations under a contract may not be assigned or altered without the consent of the other party. However, most building contracts, particularly those based on unit prices, include a change clause entitling the owner to add or subtract from the work. In subcontracts, it is not unusual for the upper-tier payer (normally the contractor) to complete a certain amount of work originally promised to the subcontractor, particularly where a favourable profit margin exists. This process is referred to in the industry as a deduction of units of work.

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