Three Selected Clauses

three viable substitutions for the termination for owner convenience, delays and extension of time, and change orders clauses that have been stricken from the original contract. In this letter I will provide a comprehensive report over the three recommended clauses and discuss the reasoning behind my selections. The criteria utilized to determine the priority of the selected clauses focused on mitigating potential damages and limiting assumed liabilities. The recommended clauses are selected from general conditions section of the ConsensusDOCs 200 series referenced in ‘A Matrix of Selected Clauses In Three Standard Contracts’, per your request.
Termination for owner’s convenience conditions are unbeneficial to the interest of a subcontractor
The liability of completing additional work requirements resulting from change order directives is shifted toward the subcontractor through the inclusion of a change order clause. This is applicable to the conditions stipulated within the change order clause stricken from the contract. The owner under this clause is given authority to freely issue work order directives with the consideration of the contractor. These changes potentially leave the subcontractor subjected to any actual damages suffered from persistent changes to contractual work obligations. The assumed work liability of the subcontractor is further enhanced by the ambiguous language used to outline the owner and contractor’s responsibilities when determining the acceptance of an issued change order directive. This can lead to an increase in vulnerability for a subcontractor who is bound to the changes made in an arbitrary decision making process. To mitigate the risk of change order directives, I recommend replacing the existing change order clause with a condition defining the parameters for substantial completion of work. The term substantial completion is often used to defend against claims made by the owner against a contractor accused of a breach in the contract. This term can also be utilized to defend
I will be available to discuss any questions you may have concerning these suggestions at your earliest