Cardinal Change and Abandonment: Applications for Contractors, Owners, Sureties
The concepts of cardinal change and contract abandonment are important to all of the main players in private construction - contractors, subcontractors, project owners and performance bond sureties. For contractors, cardinal changes or contract abandonment can result in the court tossing aside the contract allowing the contractor to recover damages on a quantum eruit or total cost theory. These theories can result in owners facing potential exposure for monetary amounts significantly above the original contract price. Those same owners may look to their design professionals for indemnity or contribution.