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Unwritten Directives Enforced Against Contractor Changes-directed; Payment-final

Sunday, June 04, 2006 10:59 am

Unwritten Directives Enforced Against Contractor Changes-directed; Payment-final

A federal district court has ruled that a subcontrac-tor could recover for oral change orders and the prime contractor was not entitled to take a prompt payment discount.

The government of the District of Columbia awarded two contracts to Interior Systems, Inc. (ISI) for improvements to two buildings. ISI subcontracted the electrical work on both projects to Chatman Electric, Inc. The subcontracts contained no provision addressing extra or changed work.

As work progressed on one project, ISI presented Chatman with revised [...]

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