Means & Methods: Newsletter of the Rees Broome Construction Law Group

February 7, 2019
On your current project and like many general contractors, you front end loaded your schedule of values, perhaps excessively. The project has been humming along as planned, with the owner paying all of your payment requests without objection. But now halfway into the project, the owner decides to delete some of the work, and in particular a detail that is only 25 percent complete. As allowed by the contract, the owner issues a deductive change directive in writing to delete the remaining work for this activity and demands a credit. What should you do, and how much credit must you allow?