Unorthodox change order terms

[steelfab37]

We have a small problem with a project that we're working on. There is a dimensional discrepancy between the architectural dimensions for a drive thru canopy that we are fabricating (I work for the fabricator) and what the structural EOR has placed on the contract documents. Apparantly the EOR is going to be responsible for the cost of the change directly. My issue is that this change will not be part of the contract and will be paid directly from the Engineer, therefore cutting out contractual obligation of payment.

My question is, is this a normal practice that we have just not seen yet, or should we try to force this into the contract (standard AIA contract)? We've produced some 400 odd structures from $10,000 to $1.2 mil. and have never had this situation come up, making us very leery in agreeing to the terms. I will have some form of small contract written out for this with the EOR, but the seperation of this change from the actual contract sounds fishy.

I'd like to hear your thoughts, I have a great respect for all of the members on this forum and have learned quite a lot from the questions and answers over the years. Also, apologies if this is an inappropiate topic, I'll remove it if so. I just figured that if this practice has been done before, someone on this board will know of it and be able to give us pointers in how to handle the situation.


Thanks.


In case anyone is wondering, the drawings were submitted with questions on these particular dimensions and were verified in writing on the dimenions lines by the EOR, Arch, and G.C. The beams, columns, canopy segments, and all misc parts were fabricated according to the verified dimensions before the Arch decided that they needed to be changed, thus the change order...otherwise this would have been a moot point for us.

 

[MiketheEngineer]

I have heard of it being done. But you are asking a bunch of engineers legal questions.

Give your lawyer a call.

 

[dik]

Why did the contractor not 'catch' the dimensional error?

Dik

 

[a2mfk]

Wow, glad I have yet to have to cut a check in this situation, but it happens to the best of us... I hate to suggest this, but if the EOR has admitted fault and accepted responsibility, then could you not insist on receipt of this payment prior to supplying the steel?

 

[Lion06]

If it was verified by all parties, why is the EOR the only one eating the change order?

 

[Lou47]

What ever you decide, you should run by your attorney, especially if the dollar amount is significant.
Consider just doing a change order with whomever your contract is currently with. This way you should preserve your contractural terms and the burden of collecting the money for the change is with the other party. If your contract is with the Owner, all the better.Good luck.

 

[cvg]

make sure you charge adminsistrative fees for the additional paperwork, legal review, re-work etc. Fabricator should not have to eat the cost for any of this change, regardless of who made the mistakes or the decision to change things.

 

[steelfab37]

Thanks for your feedback. Our lawyers have given us our answers and we have proceeded accordingly, but I thank you all for your quick responses and advice.

This wouldn't have been an issue at all had it just stayed as a contract change order...that or if someone had actually read the questions that our company, the light guage truss sub, the joist and deck manufacturer, and the roofing sub put on our submittals. Had it been caught or answered correctly during the submittal stage, there wouldn't have been a cost from us at all...we're only talking about 8ft, easily fixed until you have to fabricate everything over again from scratch.

Anyhow, thanks again all I need to move on before I give too much detail. Keep up the good work here, it is well appreciated.