The concept of Cardinal Change developed out of subsequent federal procurement law, and also applies to private sector construction contracts. A Contractor’s Cardinal Change claim is probably the most challenging claim to successfully prevail on. Holloway has found that the most common circumstance is one wherein a construction general or trade contractor working under either public and private sector contract files a Cardinal Change Claim when such a change has not actually occurred. For example, one of the most common Cardinal Change claims is where numerous approved and/or denied change orders are alleged to be determinative of cardinal change.

DOES YOUR CLAIM SATISFY THESE CONDITIONS?

A contractor’s entitlement to cardinal change damages arises in rare circumstances. For example:

  • The contractor can clearly show that the alleged Cardinal change was a “profound”, “fundamental”, “drastic”, and “substantial” modification to the original contract.
  • The contractor can clearly show that the alleged Cardinal change was not within the contract scope or contemplation of the parties at contract execution.
  • If the contractor bid a 1-Star Hotel and built a 5-Star Hotel, she may have a decent cardinal change case. Holloway has never issued a report or opinions supporting a cardinal change and we have never seen a successful cardinal change claim. Therefore, we would advise the contractor to focus on the appropriate and supportable type of change claim.

    READ MORE HERE ABOUT CARDINAL CHANGE CLAIMS. . .

    CONTACT INFO

    J. Steve Holloway, GC
    The Holloway Consulting Group, LLC
    10885 W. Beloit Pl.
    Lakewood, CO 80227
    Tel: (303) 984-1941
    Email: hollowayconsultinggroup@gmail.com

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