Construction project changes are generally litigated. In most cases, changes are due to unanticipated conditions. The condition can occur after the construction project has already started. But, regardless of how well a construction project is designed, handled or managed, it’s unlikely that it won’t have changes. Nevertheless, change orders enable a contract to easily accommodate changes. But, a formal change order that is written should be used no matter what the source of these changes is.
A change order is simply an amendment of the construction agreement between the property owner and the contractor that deletes, changes, or adds the work to be performed. The specifications, plans, and material selections can also change. These changes affect the schedule of a construction and cost of the entire project. In most projects, change orders tend to be a routine occurrence especially in larger renovation and addition projects. Here are the major reasons for construction change orders.
There are conditions that may not be easy to observe before the start of the actual construction process. Such conditions can be above or below the surface. Unfortunately, unexpected conditions can increase the contractor’s performance costs substantially. Soil is an example of an unforeseen condition. Condition of the soil can differ from what was thought of. Once this has been noticed, a change order has to be issued and priced before the construction project moves to the next step.
A drawing may require a specific product. However, specifications might require a different product. This can cause issues since it makes provision of an accurate estimate difficult for a contractor. Inaccurate plans can lead to disagreements over the actual costs. Therefore, it’s important to make sure that a contractor has complete and accurate specifications to avoid extra work, cost, and change orders.
Drawing Omissions and Errors
If a project has omissions and errors, a change order can be issued. When things like soft costs are left out, a request for change order can be issued. This can lead to construction costs overruns. That’s why you should come up with a detailed drawing.
These are some of the reasons why a construction change order can be issued. To avoid them, take time to prepare for the project.