Disputing Entitlement on HVAC Bulletin Change Order

Overview - Clarifying Scope vs Clarifying Location

On a multi-family residential development, a change order was submitted in response to a bulletin that identified specific locations for components of the HVAC system. The contractor treated this bulletin as the basis for a substantial change order, claiming the components were newly added to the project.

The Problem: Mistaking Clarification for Added Scope

The change order, totaling several hundred thousand dollars, was based on the assumption that branch selector boxes for the VRF system were new scope items. However, these components were not new. They had been shown on the original riser diagrams, listed in the mechanical schedule, and included in the mechanical subcontractor’s approved submittal package well before the bulletin was issued. Additionally, the electrical subcontractor submitted a parallel change request for providing power to these same boxes, despite them being clearly labeled on the original panel schedules.

Our Solution: Using Design Documentation to Establish Base Scope

We challenged the entitlement of the change order by referencing the original design documents. We demonstrated that the branch selector boxes were always part of the base scope and that the bulletin merely clarified their physical locations. This included pointing to:

• The original riser diagrams

• The mechanical equipment schedule

• The mechanical subcontractor’s submittal package

• The electrical panel schedules showing power to the boxes

This documentation clearly established that both the mechanical and electrical scopes already included these components.

The Result: Major Cost Avoidance Through Scope Validation

By presenting this evidence, we reduced the mechanical change order from several hundred thousand dollars to less than $20,000. We also prevented the electrical change order from being approved, avoiding unnecessary costs and preserving the project budget.

Key Takeaway: Clarification Does Not Equal Change

When bulletins clarify the location of existing scope, they do not justify new change orders. Thorough review of original design documents and submittals is essential to distinguish between actual scope changes and clarifications, protecting owners from inflated or duplicate claims.