Idaho commercial construction law is multifaceted and can prove to be quite complicated. There exists an array of concepts and practices that are unique to commercial construction law, including a process known as equitable adjustment.
Definition of an equitable adjustment
Equitable adjustment is a concept or practice utilized in commercial construction law involving contracts with different types of governmental agencies and entities. An equitable adjustment is a construction contract alteration or change that is permissible pursuant to a preexisting changes clause.
Purpose of an equitable adjustment
Generally speaking, an equitable adjustment is designed to compensate a contractor in certain situations. A prime example of when an equitable adjustment occurs is to compensate a contractor when a contractor incurs additional or unexpected expenses arising from the conduct or actions of a governmental agency or entity. Another example of equitable adjustment is to compensate a governmental agencies for certain types of contractual reductions.
Request for an equitable adjustment
Governmental agencies and entities have mechanisms in place through which a contractor can make a formal claim for additional compensation. Similarly, processes exist for a governmental agency to more formally seek economic redress.
Equitable adjustment can be said to bypass these formal claim processes. Rather, a request for equitable adjustment does not require the utilization of these formal processes to obtain compensation for money expended, time spent, and materials used.
Due to the complexity of commercial construction contract matters, including equitable adjustment in some instances, having legal assistance tends to be advisable. Involved parties can meet with an attorney and have an opportunity to obtain a general case evaluation regarding a particular construction law issue.