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Owner Waived Written Change Order Requirement Changes-directed; Substantial Completion

Saturday, July 03, 2004 01:34 pm

 
Owner Waived Written Change Order Requirement Changes-directed; Substantial Completion

An Iowa court has ruled that a contractor did not achieve substantial completion of a project and could not maintain a mechanic's lien. But the contractor was entitled to payment in equity for extra work authorized by oral directives.

The Glasbrenners awarded a contract to Palmer Construction Co. to construct a house on property located in Ely. The contract, with a fixed price of $171,000, required that all change orders be in writing. Several written change orders in the early stages of the project increased the contract price to $179,243.

As the work progressed, the owners issued oral directives for changed and [...]

 
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