What is a constructive change and how does it differ from a formal Change Order?

What is a constructive change and how does it differ from a formal Change Order?

• A. A constructive change arises when the contractor performs work outside the contract scope due to owner/architect direction; may require a formal Change Order later.
• B. A constructive change is a formal Change Order that is issued before work begins.
• C. A constructive change is a change in ownership of the project.
• D. A constructive change only affects schedule, not scope.

Answer: (A)

A constructive change happens when the contractor ends up doing work outside the contract scope because the owner or architect directed it, or because conditions require a different approach, and this modification can create an obligation for additional compensation or time even if no formal Change Order is issued at the outset. It’s called “constructive” because the change is created by actions and directions rather than by a written amendment. A formal Change Order, in contrast, is an official written document that amends the contract to authorize a change in scope, price, and schedule, with mutual agreement from both parties before or as the work proceeds. It serves as the formal record of the adjustment. So a constructive change is an implied modification arising from direction, while a formal Change Order is the formalized, agreed-upon amendment.

A constructive change happens when the contractor ends up doing work outside the contract scope because the owner or architect directed it, or because conditions require a different approach, and this modification can create an obligation for additional compensation or time even if no formal Change Order is issued at the outset. It’s called “constructive” because the change is created by actions and directions rather than by a written amendment.

A formal Change Order, in contrast, is an official written document that amends the contract to authorize a change in scope, price, and schedule, with mutual agreement from both parties before or as the work proceeds. It serves as the formal record of the adjustment. So a constructive change is an implied modification arising from direction, while a formal Change Order is the formalized, agreed-upon amendment.