From bathroom renovations to deck installations, home improvement projects are often more complicated and extensive than clients expect. Contractors know that endeavors like these often require flexibility. Contracts often include provisions for change, but unexpected challenges or changing client needs can make it hard to stick to the original terms.
In these cases, change orders are crucial. These documents serve as formalized changes to the original contract. They ensure that all parties have a clear understanding of the revised scope, timeline and costs, potentially protecting contractors from disputes or claims related to the changes.
When do you need a change order?
While not all modifications or issues require a change order, it may be necessary if it has a significant impact on the project’s main tasks, schedule or budget. This includes:
- Unexpected issues arising during execution: Common problems that come up include hidden structural issues, lack of materials and weather delays. These are often out of the builder’s hands and may require changes to the project time or cost.
- Clients changing their minds: As the project progresses, clients may want new materials, extra features or different layouts. A change order is important because it puts these new wishes in writing and documents how they affect the project.
- Changes to local building codes or regulations: Mid-project updates to safety standards, material specifications or structural requirements may need contract revisions. For example, new energy efficiency standards might require upgrading insulation or HVAC systems in an ongoing renovation.
Change orders usually include details such as detailed descriptions of the change, its impact on the project cost and schedule and signatures from both the contractor and the client. This ensures that all parties agree on the modifications and their implications.
Contracts form the foundation of any construction project
A strong foundation is important to any building. In the same way, a detailed contract is crucial to any construction project. Consider seeking advice from an attorney when drafting and reviewing any legal document.