is the contractor many times can’t come to agreement with owners on the merits of a change. Relationship with the owner, delivery methods, personalities and experience all come into play. The quantity of changes can increase very rapid- ly, and if the onsite project team doesn’t have the experience or abil- ity to follow the terms of its con- tract to protect itself and its sub- contractors, the project team loses control. In its haste to keep the project on track, it tries different methods to get the subcontractors to proceed, which can effectively shift the risk of nonpayment to the subcontractor. These methods include: giving the subcontractor’s field foreman verbal vague autho- rization; not responding to written notifications of change; and giving an incomplete authorization to pro- ceed while being very careful that entitlement or approval of the price or pricing method is not given. The plan is to coerce the sub- contractors into performing the changed work, so if the contractor can’t come to agreement on merit with the owner at a later date, it has effectively shifted the risk of nonpayment to the subcontractor. At that point the contractor can hide behind the actual change pro- visions of the contract to protect itself by stating that the terms and conditions of the contract were not followed. Rather than sticking to the change provisions of the contract agree- ments, a weak project manager will try to be as vague as possible in his direction to proceed, mak- ing sure he is not giving direction per the subcontract agreement. That’s why contractors give indis- tinct responses to tile contractor change requests usually by email and sometimes even verbally stat- ing things like: • “PROCEED” • “Approved” • “Proceed on a T&M basis” • “Proceed on your price not to exceed” • “You are hereby directed to pro- ceed” • “We are directing you to proceed as required by the terms of the subcontract” These directions are unclear at best and are attempts to get the subcontractor to proceed with- out agreeing on merit or cost. This allows the discussion on merit to occur after the work is complete. A simple direction such as described above may be a weak authorization to proceed, but it does not grant entitlement or approval of a price. What should subcontractors do? Read the subcontract change order terms very carefully and insist on following the process as described. Use these terms to your benefit if possible. Only proceed with a method allowed by the sub- contract terms. To be as successful as possible in collecting payment requires taking BUSINESS FEATURE –––––––––––––––––––––––––––––––––––––––––––––––––– 64 TileLetter | September 2018