Naturally, when there are significant changes needed for a project, many of the clauses within the contract will also need to be modified to align with these changes. Any time significant elements are being altered on a project (time, money, labor and equipment costs), these changes that go beyond the original contract can be hotly contested by the parties that are affected by the changes needed. In addition, these contracted parties often do not agree on the best plan of action. When disputes arise on a project, you will need the services of one of our Miami construction litigation attorneys.
As we discussed in the first and second section, if a construction project needs to pivot and adjust to certain changes, it’s critical to have a written agreement in place that prevents you from having any liability issues. When a contract needs to be altered to suit the needs of a changing project, the professional’s time and resources may also be compromised as well. With the right protection in the amended contract, a construction professional can adjust accordingly to the needs of the project and be compensated appropriately for their efforts.
Amending the Contract
It’s important that the change order clearly identifies the changes that will be made to the project and the original contract. It’s also important that all parties affected by the change order agree to these changes in writing. By agreeing to a change order with another party under contract, both professionals are establishing that they approve of the modifications needed to the project, the cost of these changes, and the amount of time these changes will take to correct. Having a change order in place removes a lot of the potential gray area that can be the catalyst for a dispute.
Third Parties Affected By a Change Order
A change order agreement can go beyond just the general contractor and the owner that signed the original contract. Any third party that is impacted by these modifications will also need to sign the change order as well. This typically involves any lender, bonds, or surety companies that have invested into the project. If a contract is amended without their approval, this may release them from the obligations in the original contract.
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.