Levi W. Barrett, co-managing partner of P&A’s New Jersey office and chair of the firm’s Contracts, Project Documentation, and Risk Management practice was recently featured in The Construction Broadsheet‘s latest “Legal Q and A” to answer questions about sub ‘volume’ discounts and extras.
The questions included:
A subcontractor gave us a reduced price for a package of several projects, but there are separate contracts for each project. We are underway with two of them. Are we allowed to take bids on the remainder of the projects?
We received design input from one of our subcontractors, and the company submitted a change order for the work they did related to that. The input was related to the sub’s scope of work but did change the scope slightly. Is this really an extra? Put another way, where is the line between work “incidental” to the contract scope and work that warrants an additive change order?
We made a small change to the scope of work for one of our subs, but the anticipated dollar amount is very small. At what point is a change enough to warrant additional money for the sub-performing the work?
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