Understand Field Orders and how they can be utilized in your construction project.
Owners and contractors may not recognize the significance of a Field Order (or Change Directive) provision in their construction contracts. For the Owner, a Field Order provision enables the owner to require the contractor to proceed with changes in the work, even though the owner and contractor have not agreed on the cost of the additional work. This allows the owner to avoid project hold-ups that result from uncertainty on the scope of the additional work, or from a disagreement with the contractor on the reasonableness of proposed cost. A well-drafted Field Order provision will provide the method of determining the cost of the work and resolving disputes. For the contractor, the Field Order provision requires the contractor to perform work even though there has not been agreement on the price. A Field Order provision that is poorly worded or that favors the owner can prevent the contractor from getting paid fairly and promptly for the additional work. This topic will help both owners and contractors understand Field Orders and their use in a construction project. It will help them to distinguish between even-handed provisions and those that adversely affect the owner or contractor when reviewing construction contracts, and to negotiate Field Order provisions that better serve their needs.
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