Which event commonly triggers a change in contract price or contract time?

Which event commonly triggers a change in contract price or contract time?

• A. Suspension by Owner for Convenience
• B. Substantial completion
• C. Change in ownership
• D. Price escalation clause

Answer: (A)

Suspension of work by the owner for convenience is a classic event that triggers adjustments to both contract time and price. When the owner halts progress, the contractor faces standby costs and possibly demobilization/remobilization expenses. The contract typically allows for an extension of time and compensation for these costs through a change order or directive, so the overall schedule and budget are adjusted to reflect the interruption. Substantial completion is simply a milestone marking near-final status; it doesn’t by itself initiate changes in price or time. A change in ownership doesn’t automatically alter the contract terms unless the agreement includes specific provisions about assignment or novation. A price escalation clause provides a mechanism to adjust price under defined conditions, but it isn’t an event that, on its own, triggers a change unless those conditions occur.

Suspension of work by the owner for convenience is a classic event that triggers adjustments to both contract time and price. When the owner halts progress, the contractor faces standby costs and possibly demobilization/remobilization expenses. The contract typically allows for an extension of time and compensation for these costs through a change order or directive, so the overall schedule and budget are adjusted to reflect the interruption.

Substantial completion is simply a milestone marking near-final status; it doesn’t by itself initiate changes in price or time. A change in ownership doesn’t automatically alter the contract terms unless the agreement includes specific provisions about assignment or novation. A price escalation clause provides a mechanism to adjust price under defined conditions, but it isn’t an event that, on its own, triggers a change unless those conditions occur.