Change Order
A "change order" provision allows the Owner to direct the Contractor to make changes in the work. It further provides for a change in the compensation and/or a change in the completion date. Contractors need to understand and to follow carefully such provisions; otherwise, they run the risk of not being compensated for their work. So long as the change is within the general scope of the project, the Contractor must proceed. Whether or not the parties have agreed upon the compensation and/or schedule changes; a "cardinal change" results in such a drastic change in the project that the remedies for compensation and time proscribed in the "change order" provisions are not applicable. In the case of a cardinal change, the Contractor must agree to the change in the work in order for it to be effective. See Daugherty Co. v. Kimberly-Clark Corp., 92 Cal. Rptr. 120 (Cal. App. 1971). In that case, the California appellate court found that, when the scope of work undertaken greatly exceeded that called for under the contract, the Contractor was entitled to abandon the project.
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