Change Orders are instructions to revise construction plans after they have been completed. Change orders are common to most projects, and very common with large projects. After the original scope (or contract) is formed, complete with the total price to be paid and the specific work to be completed, a client may decide that the original plans do not best represent his definition for the finished project. Accordingly, the client will suggest an alternate approach.
Common causes for change orders to be created are:
" The project's work was incorrectly estimated
" The customer or project team discovers obstacles or possible efficiencies that require them to deviate from the original plan
" The customer or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project
" During the course of the project, additional features or options are perceived and requested.
Alaska Construction Contract Change Order is a legal document used in the field of construction to modify the terms and conditions of an existing contract. It outlines the changes required in the original agreement, such as modifications to the scope of work, cost adjustments, schedule revisions, or any other mutually agreed-upon alterations. A change order is necessary when unforeseen circumstances, design modifications, or other factors arise during the construction project's execution that require adjustments to the initial contract. It helps ensure that all parties involved are in agreement on the changes agreed upon and avoid potential disputes or legal issues. Several types of Alaska Construction Contract Change Orders exist, depending on the nature of the modification required: 1. Scope Change Order: This type of change order is used when there is a need to alter the project's scope of work, including adding or subtracting components or adjusting the project's objectives. 2. Cost Change Order: A cost change order is utilized when adjustments are required in the contract price due to variations in material costs, labor expenses, or unexpected additional work. 3. Schedule Change Order: This type of change order is utilized when there is a need to modify the project's timeline, including extending or shortening the overall duration or revising milestones and completion dates. 4. Design Change Order: Design change orders are used when there is a need to modify the project's construction plans, architectural drawings, or any other design-related aspects during the construction process. 5. Directive Change Order: A directive change order is issued by the owner or project manager to address urgent changes that need immediate implementation but cannot be delayed until the formal change order process is completed. 6. Suspension Change Order: If a construction project needs to be temporarily suspended due to unforeseen circumstances, financial issues, or legal disputes, a suspension change order is used to document the temporary halt and specify the conditions for resumption. These various types of change orders help facilitate efficient communication, documentation, and agreement between the owner, contractor, subcontractors, and any other relevant parties involved in the construction project. It ensures clarity and transparency in project modifications while protecting the rights and interests of all stakeholders.
