BUSINESS
Google the words “construction extras” and the results
are framed in a legal situation or case law summa-ries.
There must be a reason why only legal firms are
talking about this in public. It’s probably because like
death, taxes and divorce, there is money to be made in extras.
How do extras happen?
One type of extra is when an owner decides to change some-thing
or a consultant – on behalf of the owner – modifies a
design after tender. This type of situation should be relatively
easy to deal with in writing. The contractor needs to handle
these changes the right way to avoid having a “working for
extra” situation turn into a “working for nothing” outcome.
Any legal advisor will tell you that even though “change
order” has the word “order” in it, it needs a bi-lateral agree-ment
to be truly effective.
The other main type of extra is when a contrac-tor
or a subcontractor decides that in order to
complete a project the right way, the work
that is happening – or has to happen – is
well beyond the scope of what was origi-nally
intended by the contract. This is
often the much more contentious type
of extra.
Why do extras occur?
A prime consultant or architect may answer, “Contractors
taking advantage.”
“Incomplete, inadequate or improper design by the proj-ect
team,” might be the typical response from the general
contractor. Oftentimes, “low bid or extreme competition,”
may also be a possible contributing cause.
What do these extras frequently reveal within the frame-work
of a contract and design-bid-build tender set? The
designer or owner meant one thing, and the contractor inter-preted
another.
The rise of alternative procurement, specifically design-build
and P3, could be interpreted as a clear indicator of
the construction industry’s desire to move away from the
inherent scope creep that all too often occurs in the design-bid-
build process. In the case of a design-build or P3 project,
everyone has the clear advantage of a close-knit group
that works together to manage and control the
total scope of the project.
In the case of traditional design-bid-build,
the scope is all too often finalized at either
side of the table (design team versus low
contractor) at tender close – a relatively
short process (weeks to a month or two)
DEAGREEZ/123RF
Digging into Construction Extras
Extras can cause major headaches when
there’s a lack of clear communication
By Mark Tigchelaar
PILING CANADA 51
/profile_deagreez
