Instructions: G745™–2015, Change Directive for a Design-Build Project

 G745™–2015, Change Directive for a Design-Build Project

Synopsis. 

AIA Document G745–2015 is a directive for changes in the Work for use where the owner and design-builder have not reached an agreement on proposed changes in the contract sum or contract time. AIA Document G745–2015 was developed as a directive for changes in the work which, if not expeditiously implemented, might delay the project. Upon receipt of a completed G745–2015, the design-builder must promptly proceed with the change in the work described therein, unless the design-builder determines the applicable building codes or other regulatory requirements, including those related to health, safety, and welfare, preclude implementation of the change. For all document details and a record of changes, see the summary »

 

Completing G745–2015.

With the concurrence of the Owner, the Architect initiates and prepares the form, including a description of the changes in the Work and attachments.

Method of Determining Costs. In accordance with AIA Document A141™–2014, Section 6.3.3, insert the method proposed for determining the final Cost of the Work. The Owner and Design-Builder 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 Design-Builder 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.

Reference to AIA Document A141–2014, Section 6.3.7, indicates that payment will be made on a time and material basis with reasonable allowances for overhead and profit as defined therein. Refer to A141–2014, Section 6.3.7, for a definition of the method proposed for determining costs to be included.

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 Design-Builder 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 clearly documented by written agreement using AIA Document G742™–2014, 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 Owner has completed the form and has executed it in duplicate, both copies should be sent to the Design-Builder.

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.

Upon receipt of the Change Directive, the Design-Builder shall promptly proceed with the changes directed, unless the Design-Builder concludes that the applicable building codes or other regulatory requirements, including those related to health, safety, and welfare, preclude implementation of the change(s). If the proposed method of adjustment is acceptable, the Design-Builder informs the Owner, 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 Design-Builder shall inform the Owner. In such event, the method of the adjustment will automatically become that designated in A141–2014, Section 6.3.7.

The Owner should prepare a Change Order for execution by the Owner and Design-Builder for the change in the Work directed by the Change Directive when

(a)  the Design-Builder agrees to the proposed adjustment of the Contract Sum and Contract Time upon receipt of the Change Directive, and

(b)  the Design-Builder and Owner agree to the determination of the change in Contract Sum pursuant to A141–2014, Section 6.3.7, and Contract Time pursuant to A14–2014, Section 6.3.10.

If, following the Owner’s determination, no agreement is reached, the matter shall become a Claim.

Copies of the document should be distributed to the Owner and interested parties selected from the distribution list at the top right of the document.

 

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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