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 construction contract change order refers to a written agreement between the owner or contractor and the other party involved in the construction project when modification or alteration is needed to the original contract terms and conditions. In Iowa, change orders are essential to manage unexpected circumstances, design revisions, or additional work requested during the construction process. This document plays a crucial role in ensuring transparency, accountability, and clear communication between all parties involved. Key elements of an Iowa construction contract change order include identifying information such as project name, date, parties involved, and contract reference number. It also specifies the reason for the change order, whether it is due to unforeseen conditions, a design change, or modifications requested by the owner. The change order should contain a detailed description of the proposed change, including specifications, materials, and labor required. In Iowa, different types of construction contract change orders may vary depending on their purpose and impact on the project. The most common types include: 1. Change in Scope: This type of change order typically arises when the owner requests additional work or modifications that were not originally included in the initial contract scope. It requires detailed documentation to outline the changes and their effects on the project timeline and cost. 2. Change in Design: Sometimes, during the construction process, owners or architects may want to modify the design or make alterations to the originally agreed-upon plans. This type of change order necessitates updated drawings or specifications to ensure the proper implementation of the changes. 3. Change in Contract Price: In certain situations, unforeseen conditions or events can impact the project costs significantly. This type of change order addresses situations where there are additional expenses or cost reductions due to factors such as site conditions, material availability, or labor changes. It requires a thorough assessment and negotiation of the new contract price. 4. Time Extension: When unexpected obstacles or change requests arise, they may cause delays in the project's completion. A time extension change order allows for an adjustment to the project schedule to account for these unforeseen circumstances. Iowa's construction contract change orders are governed by state-specific laws and regulations to protect the rights and interests of all parties involved. It is crucial for both the owner and contractor to understand and adhere to these requirements to mitigate disputes and properly document any modifications to the original contract. Consulting with legal professionals or construction experts can provide further guidance in drafting and executing these change orders effectively.
