In the construction industry, change orders are inevitable. These orders, which deviate from the original agreement on the project, can stem from unforeseen conditions with the site, design modifications, regulatory changes or the client’s preferences.
While a change order can be necessary to address these issues, they can also lead to confusion, delays and increased costs if they are not properly managed.
So, how do you keep change orders in check and make sure they don’t cause chaos? Here are a few suggestions:
Get everything in writing – and be detailed about your contracts
Never accept change orders that are not written down, because disputes over exactly what was said can be particularly contentious. Your written change order should detail:
- The exact scope of the work being done;
- Detailed specifications about materials, design or other important factors; and
- An explanation and agreement regarding any additional costs or time extensions.
Detailed agreements can help avoid misunderstandings that can lead to litigation.
Communicate often and as clearly as possible
A lot of the work you have to do when in the construction industry is managing the expectations of your clients and others – and that includes your subcontractors and other team members.
Make sure that everybody is informed about change orders as soon as they come in and that they fully understand the expectations that might affect their part of the project. You want everybody to be on the same page with as much clarity as possible.
Make sure that your communications are also in writing, whether you are talking via email, text or a messaging app of some kind. That record can prove invaluable if there are questions or uncertainty later.
If a change order does lead to a dispute, don’t panic. An experienced construction law attorney can help you find effective solutions and defend your interests.