Contractors base their bids on the specifics of the job. One of these is the project the client says they want done. This is known as the scope of the project, and it’s included in the contract between the contractor and client. The scope contains information about just about every aspect of the project, such as materials and schedule.
If the client opts to change anything about the project, a change order is likely needed. A change order is a written revision to the original contract. It becomes the basis of changes to the scope, price, and schedule.
Change orders are sometimes necessary even if the client doesn’t ask for changes. This includes things like site conditions, material substitutions or regulatory requirements that directly affect the project.
Change orders protect the contractor and client
The information in the change order is a checkpoint that helps to clearly outline the updated expectations. Change orders protect the contractor from claims of incomplete construction that are the result of the necessary change. They protect the client from contractors failing to uphold the terms outlined in the change order.
Change orders should be written out with comprehensive terms and signed by both the client and the contractor. In the event there is a claim made against the contractor, this can provide valuable information about the project.
It’s critical that contractors understand how they can protect their business, and they should recognize the importance of contracts. Having someone on their side to uphold their rights and protect their company if legal action is taken against them is vital.
