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ELECTRI Research Has an Impact
As of April 27, 2017
April 28, 2015
ELECTRI International has sponsored important research on the ways that change orders have an impact on the construction industry. Those results are now bearing fruit across the country.
In April, ELECTRI Council Chair Greg Long (Long Electric, Napa, CA) was part of the team from NECA’s Northern California and San Diego Chapters at a series of legislative meetings and presentations in Sacramento. The focus was a new California bill (AB-1347) on change order legislation. Currently, there is no California law in place to require agencies to pay for legitimate claims made by contractors for work performed and approved by the awarding agency. Passage of AB-1347 would put a process in place that requires agencies to respond to a contractors claim, requires the agency to pay out of portions of the work they acknowledge/agree they owe the contractor, and implements a fair process for resolving any disputed portions of payment.
Greg Long and Darlene Besst (NorCal Chapter Government Affairs) also attended the American Subcontractors Association Day at the Sacramento Capitol on April 21st. Greg participated on a panel to discuss the recently released ELECTRI International research on change orders. He explained how this research, together with AB-1347, could greatly benefit subcontractors. Long spoke about the importance of taking the ELECTRI International report nationwide to all industries. He highlighted the benefit the report could have on developing standardized change order practices, along with legislation to hold awarding agencies accountable to pay for additional work as directed by the agencies themselves.
The ELECTRI report, Change Order Guidelines: Quick Reference is available to download at http://www.electri.org/sites/default/files/F3405b_ChangeOrderGuidelines-QuickReference_P.pdf.