Statutory Limit On Change Orders Bars Contractor Claim In Virginia

Thomas Brownell is a Partner in the Northern Virginia office

A recent Virginia case strictly construing a statutory limit on the amount of contract change orders has raised concerns among contractors doing business with Virginia state and local agencies. In Carnell Construction Corp. v. Danville Redevelopment & Housing Authority, 745 F.3d 703 (4th Cir. 2014), the Fourth Circuit Court of Appeals held that a construction contractor's claim for extra work performed at the request of a local housing authority must be cut by the amount it exceeded 125 percent of the base contract price because the governing body of the housing authority had not approved the changed work in advance, as required by statute.