When you think of a construction project, it is likely you won’t visualize a perfectly executed project from start to finish. With so many moving parts involved in a project, it’s easy for a delay to happen. It’s also expected that something could occur that would require a modification to your contract. So what do you do when a project is moving along and has strict deadlines? This is why Change Orders provisions are important for contracts.
What is a Change Order?
A Change Order is simply a change in your contract beyond the original contract agreement. A claim is made, then contract parties come together to agree and sign off on the changes. It’s also important to include others affected by the contract like sureties and guarantors in the agreements. As Orlando construction attorneys, we advise putting change orders in writing since change orders can be the root of many disputes.
Why Change Orders Happen
Change orders happen for different reasons. They can occur due to design errors, conflict, and omissions. Owners may initiate changes or there could be a change in site conditions. Other reasons include changes in work, pricing, or scheduling. Proposed changes should be defined, evaluated, approved before executing them.
Reduce Change Orders
Frequent change orders can be a source of frustration because it can alter the course of an entire project from costs to completion dates. It’s best to find ways to reduce change orders to lessen the potential for disputes. This is why is important to have an ironclad management system as well as continuous collaboration to track every stage of the process. Reduce Change Orders by de-escalating issues whenever possible to prevent them from escalating into a Change Order. Finally, always review every claim before making any approvals.
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.