Instructions: G714™–2017, Construction Change Directive

Synopsis. 

AIA Document G714–2017 is a directive for changes in the Work for use where the owner and contractor have not agreed on proposed changes in the contract sum or contract time. G714 should be used to direct changes in the Work which, if not expeditiously implemented, might delay the project. Upon receipt of a completed G714, the contractor must promptly proceed with the change in the work described therein. For all document details and a record of changes, see the summary »

 

Completing G714–2017.

Proposed Adjustments.

Insert the proposed method of adjustment to the Contract Sum or Guaranteed Maximum Price. The Owner and Contractor should use Lump Sum when there is likely to be mutual agreement as to the total cost of the change and all costs associated with the change are included in the Lump Sum. Unit Price should be used when there is likely to be mutual agreement by the Owner and Contractor as to the cost per unit of measurement for the change, but the number of units of measurement cannot be reasonably determined at the time the form is signed. If the proposed basis of adjustment is to be the Cost of the Work plus a Contractor’s fee, the Architect should insert a definition of, or a method for determining, the Cost of the Work and a proposed Contractor’s fee. 

The space after the designation “as follows” should be used where more than one method of adjustment, or a method other than those designated above, is proposed and where the Contractor is likely to concur with one or more of the specified methods. Pending final determination of the cost of the changes to the Work, amounts not in dispute may be included in applications for payment. Undisputed amounts should be documented by written agreement using AIA Document G702™–1992, Application and Certificate for Payment. 

Change in Contract Time.

Insert the proposed adjustment in Contract Time, if any, associated with the changes in the Work.

 

Executing the document.

Once the Architect has completed the form and has executed it in triplicate, all three copies should be sent to the Owner for authorization. The Architect alone does not have the authority to authorize additional expenditure or time extensions. The Owner’s representative executing this document must be legally empowered to authorize additional funds, and the amount of the proposed changes must not exceed the representative’s monetary authorization. Once authorized by the Owner or the Owner’s representative, the Architect should send one copy to the Contractor. 

Upon receipt of the Construction Change Directive, the Contractor shall promptly proceed with the changes directed. If the proposed method of adjustment is acceptable, the Contractor informs the Architect, and the method of adjustment selected shall be used in determining future applications for payment. If the proposed method of adjustment is not acceptable, the Contractor shall inform the Architect. In such event, the method of the adjustment will automatically become that designated in A201–2017, Section 7.3.4. 

The Architect should prepare a Change Order for execution by the Owner, Architect, and Contractor for the change in the Work directed by the Construction Change Directive when 

  (a)  the Contractor agrees to the proposed adjustment of the Contract Sum and Contract Time upon receipt of the Construction Change Directive, and 

  (b)  the Contractor and Owner agree to the determination by the Architect of the change in Contract Sum and Contract Time pursuant to A201–2017, Section 7.3.10.

If, following the Architect’s determination, no agreement is reached, the matter is referred to the Initial Decision Maker as a Claim.

 

Important.

Modifications. Particularly with respect to professional or contractor licensing laws, building codes, taxes, monetary and interest charges, arbitration, indemnification, format and font size, AIA Contract Documents may require modification to comply with state or local laws. Users are encouraged to consult an attorney before completing or modifying a document.

Reproductions. This document is a copyrighted work and may not be reproduced or excerpted from without the express written permission of the AIA. There is no implied permission to reproduce this document, nor does membership in The American Institute of Architects confer any further rights to reproduce this document. For more information, see the document footer and the AIA Contract Documents® Terms of Service.

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