Generally – Compensable or Non-Compensable

Change orders or construction changes generally come into play when there has been some alteration of the work originally agreed upon in the contract. Courts usually interpret change orders using a “changes clause” in the contract. A “changes clause” generally allows the owner to make changes and the contractor to be compensated for these changes. A frequent issue is whether the change is significant enough to be compensable. Generally, if a contractor performs more than what was contemplated under the original agreement, he will be compensated for the additional work. See Medical Clinic Bd. of City of Birmingham Crestwood v. Smelley 408 So.2d 1203, 1204 (Ala. 1981) (subcontractor hired to install sheet rock on eight foot wall was due compensation for installation of sheet rock beyond eight foot wall). Contracts typically address this issue.