In processing change orders, when should equitable adjustments be negotiated?

In processing change orders, when should equitable adjustments be negotiated?

• A. Within the shortest practicable time
• B. Within 30 days after receipt of the change order
• C. Upon mutual agreement of both parties
• D. At the time of contract award

Answer: (A)

When a change order is issued, the financial impact must be resolved promptly. Equitable adjustments should be negotiated within the shortest practicable time because quick discussion and agreement ensure the contract price and schedule properly reflect the changed work, reduce the risk of disputes, and prevent cost and performance gaps from widening as performance continues. Delaying negotiations beyond a practical timeframe can leave both parties exposed to uncertainty and potential claims. Fixed or unrelated time frames, like a specific number of days, aren’t as appropriate because they can be too rigid for diverse change scenarios. Waiting until mutual agreement is reached can stall progress if one party drags its feet, and negotiating at the time of contract award is irrelevant since the change occurs after award. The emphasis should be on timely, good-faith negotiation as soon as a change impacts cost or schedule.

When a change order is issued, the financial impact must be resolved promptly. Equitable adjustments should be negotiated within the shortest practicable time because quick discussion and agreement ensure the contract price and schedule properly reflect the changed work, reduce the risk of disputes, and prevent cost and performance gaps from widening as performance continues. Delaying negotiations beyond a practical timeframe can leave both parties exposed to uncertainty and potential claims.

Fixed or unrelated time frames, like a specific number of days, aren’t as appropriate because they can be too rigid for diverse change scenarios. Waiting until mutual agreement is reached can stall progress if one party drags its feet, and negotiating at the time of contract award is irrelevant since the change occurs after award. The emphasis should be on timely, good-faith negotiation as soon as a change impacts cost or schedule.