A subcontractor discovers an error in the plans that will require additional work costing $12,000. The project is 60% complete. What is the first step the general contractor should take?
Correct Answer
C) Document the issue and notify the owner in writing
The contractor must first document the issue and notify the owner in writing before any additional work is authorized. This protects the contractor's right to compensation and follows proper change order procedures.
Why This Is the Correct Answer
Option C is correct because proper contract administration requires immediate documentation and owner notification when plan errors are discovered. This written notification protects the general contractor's legal right to additional compensation and establishes a clear paper trail. Florida construction law and standard contract provisions (like AIA documents) require prompt written notice to preserve claims for additional time and money. Failing to notify the owner immediately can result in waiver of the contractor's right to compensation for the additional work.
Why the Other Options Are Wrong
Option A: Immediately authorize the work to avoid delays
Authorizing work immediately without owner notification and approval can result in the contractor absorbing the $12,000 cost. This violates proper change order procedures and may breach the contract terms that require owner approval for additional work.
Option B: Issue a written change directive to the subcontractor
A change directive should only be issued after the owner has been notified and the issue has been properly documented. Issuing directives without owner knowledge puts the contractor at financial risk and skips essential procedural steps.
Option D: Negotiate the price with the subcontractor first
Negotiating price with the subcontractor before notifying the owner puts the cart before the horse. The owner must first be made aware of the issue and approve any additional work before price negotiations should occur.
Memory Technique
Think 'CYA' (Cover Your Assets) - always notify the owner in writing FIRST to protect your right to payment. Never do extra work without written owner notification, or you might eat the cost.
Reference Hint
Florida Building Construction Standards - Chapter 489, Contract Administration section, and AIA Document A201 General Conditions, Article 7 (Changes in the Work)
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