Goldberg & Connolly's Construction Law Update Covers Change Order Crisis at the SCA



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Hope all of you have a Happy Thanksgiving and may your family and friends make the day beautiful.  As we have discussed in our classes, some of you are doing consulting and contracting work for the New York City School Construction Authority (SCA).  Many of you have complained about the SCA and the way they handle accounts payables (your accounts receivables).  Goldberg & Connolly are construction attorneys and they put out a monthly newsletter (Construction Law Update) discussing various construction issues.  Their latest newsletter is titled "Change Order Crisis at the SCA."  If you do business with the SCA, we strongly recommend you read this update discussing issues with the SCA's policy and the language in the terms and conditions on handling change orders that you submit to the SCA.  The article starts with the following statistic: "It has been estimated that there are 5,000 outstanding, unresolved change orders pending at the New York City School Construction Authority totaling $600-800 million dollars."  That is an amazing amount money to be still on the table waiting for payment and, in this economy, that amount of money is having a significant effect on small businesses.  That effect probably matches the effect of unvailable financing for small businesses.  The article is written well and is very understandable for us non-legal types.