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.
A change order in a construction contract refers to any modification or amendment made to the original agreement between the contractor and owner. In Arizona, a Construction Contract Change Order represents a legally binding document that allows for the alteration or adjustment of the scope of work, contract price, and/or project timeline. Change orders are quite common in construction projects as they accommodate unforeseen circumstances, modifications to the initial plans, or client requests for additional work. By using change orders, the contractor and owner can ensure that any changes made are documented, agreed upon, and incorporated into the contract. In Arizona, there are several types of Construction Contract Change Orders, each serving a specific purpose within the project. These include: 1. Scope Change Order: This type of change order occurs when there is a need to modify the scope of work outlined in the original contract. It may involve additions, deletions, or alterations to the project plans, specifications, or drawings. 2. Time Extension Change Order: When unforeseen factors arise during construction, such as weather delays, unforeseen site conditions, or client-driven changes that impact the project timeline, a time extension change order is necessary. It allows for modifications to the project schedule to ensure realistic completion dates. 3. Cost Change Order: This type of change order addresses any adjustments required in the contract price due to approved changes in the scope of work. It includes costs for additional work, materials, labor, or any variations that impact the project's overall budget. 4. Design Change Order: If modifications are needed to the design elements or engineering plans during construction, a design change order is utilized. This change order ensures that necessary amendments are made to align with the new design specifications. 5. Acceleration Change Order: In situations where the project must be expedited, an acceleration change order is employed. It outlines the necessary adjustments to speed up the construction process to meet a revised timeline. 6. Suspension Change Order: When a contractor or owner encounters issues that require them to temporarily halt construction activities, a suspension change order is utilized. It outlines the terms of the suspension, including the duration and any necessary adjustments to the project timeline or contract price. It is essential for all parties involved in the construction project, including contractors, subcontractors, and owners, to carefully review and understand the terms and conditions outlined in any change order. Arizona Construction Contract Change Orders protect the interests of both the contractor and owner by ensuring transparency and accountability in the modification process.
