If the architect rejects the proposed subcontractor who is responsible if there is a cost incurred by finding and hiring an alternate subcontractor?

• A. The contractor bears the full cost.
• B. The owner bears the full cost.
• C. The owner and the architect must increase (or decrease) by the difference.
• D. The subcontractor bears the full cost.

Answer: (C)

The main concept is equitable adjustment when an Architect rejects a proposed Subcontractor. Since the Architect is acting for the Owner in approving or rejecting Subcontractors, a decision to reject a candidate and require finding an alternate Subcontractor creates a cost impact tied to that Owner/Architect action. The contract envisions adjusting the total project cost by the difference in price between the originally proposed Subcontractor and the substitute one. Because the rejection stems from the Owner’s representative, the difference is shared between the Owner and the Architect rather than being charged solely to the Contractor or to the Subcontractor. In practice, a Change Order reflects this delta, increasing or decreasing the Contract Sum by the cost difference.