Tupelo Redevelopment Agency v. Gray Corp.
972 So. 2d 495 | Mississippi Supreme Court | 2007
What This Case Means for Subcontractors
Gray Corporation contracted with the Tupelo Redevelopment Agency to build a fairgrounds project. During construction, TRA issued change orders after work had already started and indicated more would follow. When disputes arose over payment, the court ruled that TRA had waived its strict change order requirements through this pattern of conduct. This matters to subcontractors because it shows courts will enforce changes even when formal procedures aren't followed if the owner's actions suggest they accept informal change processes.
Key Takeaways
- •Document every instance where the owner issues change orders after work begins or promises future change orders—this pattern can waive strict contractual requirements
- •If an owner consistently handles changes informally, you may have legal protection even without following the exact change order procedure in your contract
- •Keep records of all communications about changes, including emails and conversations where the owner represents that additional change orders will follow
TRA waived that particular contract provision through persistent pattern of conduct.
Frequently Asked Question
Can a contractor get paid for changes if the owner didn't follow the formal change order process?
Yes, if the owner has established a pattern of issuing change orders informally or after work begins. Courts may find the owner waived strict contractual procedures through their own conduct. However, you must document this pattern with records of all change orders and communications about additional work.
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