Forman v. Pala Construction Co.

In October 1983, respondent contracted with petitioners to construct a medical office building in the Town of Clifton *454Park, Saratoga County, for the contract price of $265,000, described as a "lump sum bid”. The contract contained the following clause: "Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate.”

During construction the parties orally agreed on many extras and alterations. In July 1984, the building was substantially completed. However, due to confusion about…