What is a Changed Condition Clause? A Comprehensive Overview

Definition & Meaning

A changed condition clause is a provision in a construction contract that outlines the responsibilities of the contractor regarding unexpected changes in the construction site conditions. These changes can lead to additional costs that the contractor may have to bear. Common types of changed condition clauses include the site investigation clause, which requires contractors to conduct site assessments, and the disclaimer clause, which limits liability for unforeseen site conditions.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A contractor begins work on a site and discovers that the soil is much softer than initially assessed, requiring additional foundation work. Under the changed condition clause, the contractor may be entitled to additional compensation for these unforeseen costs.

Example 2: A contractor is working on a renovation project and finds hazardous materials that were not disclosed before the project started. The contractor can invoke the changed condition clause to seek reimbursement for the costs associated with safely removing these materials. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Changed Condition Clause Variations
California Requires detailed site investigation reports to be included in contracts.
Texas Allows for broader definitions of unforeseen conditions, including weather-related events.
New York Emphasizes contractor notification timelines for changed conditions.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Site Investigation Clause A requirement for contractors to assess site conditions before starting work. Focuses on pre-construction assessments rather than post-discovery liabilities.
Disclaimer Clause A clause that limits liability for certain risks or conditions. May exclude liability for unforeseen conditions, whereas changed condition clauses specify contractor obligations.

What to do if this term applies to you

If you are a contractor facing unforeseen site conditions, review your contract for the changed condition clause. Document the conditions thoroughly and notify the relevant parties as specified in your contract. Consider using US Legal Forms to access templates that can help you draft notifications or claims. If the situation is complex, seeking professional legal advice may be beneficial.

Quick facts

  • Typical fees: Varies based on project scope and legal counsel.
  • Jurisdiction: Primarily civil law within construction contracts.
  • Possible penalties: May include liability for additional costs if not properly addressed.

Key takeaways

Frequently asked questions

It is a provision in a construction contract that defines the contractor's liability for unforeseen changes in site conditions.