Change Order Provisions
Change orders during a construction project are one of the most litigated issues in the construction industry. No matter how well the contractor manages time and project design, it is likely that changes will still occur. As construction lawyers in Jacksonville, we know that effective management of these change orders during a construction project is an important factor in the success or failure of the project.
Every contractor should know that when it comes to change order provisions, the discussion should start in the early stages with the construction contract. Every single construction contract should include a clause that anticipates any change order provisions in the project. It’s recommended that you use change order provisions that establish a procedure for issuing any written adjustments to the contract for new work to be performed, any costs for changed work, and any schedule changes that might be required for performing the work.
Changes in contracts tend to happen when there are unanticipated project conditions, i.e., design document errors or changes to the project tasks order. No matter what causes a contract change, it’s always ideal that it ends with a formally written change order from the contract that the owner agrees to.
What Should be Included in a Change Order?
As stated earlier, all construction contracts should include a written change order form. As construction attorneys in Jacksonville, we are aware of what goes into a change order form in the contract. The change clause of the contract must include a provision about calculating the cost of changes (including schedule and equipment adjustments), and how much time should be allowed for the owner to accept or reject the change order.
Change orders can sometimes be delayed by architectural input, or other times because of required modifications in project financing. Whatever the delay is, it will take time and have an impact on the construction project’s schedule. All contract change clause should include what will happen if a delay occurs and when the contractor is permitted to halt work pending on a change order decision.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.