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.
Maryland Construction Contract Change Order is a legally binding document that allows modifications or alterations to be made to an existing construction contract in Maryland. This change order provides a systematic approach for contractors and subcontractors to address changes in scope, time, cost, or any other aspect of a construction project that deviates from the original contract terms. It ensures that all parties involved are aware of the agreed-upon changes and their impact on the project. A Maryland Construction Contract Change Order typically outlines the reasons for the change, the specific modifications being made, the associated costs or savings, any adjustments to the project schedule, and any additional terms and conditions that may apply. It serves as an amendment to the original contract and must be signed by all relevant parties, including the owner, contractor, and any subcontractors involved. This ensures that everyone is in agreement with the changes and prevents potential disputes or claims arising from misunderstandings. There are different types of Maryland Construction Contract Change Orders that may be encountered in the construction industry. These include: 1. Change in scope: This type of change order occurs when there is a need to add, remove, or modify work that was not originally included in the contract scope. It may involve changes to project design, materials, or specifications. 2. Change in schedule: Sometimes, unforeseen circumstances or delays may require adjustments to the project timeline. This type of change order allows for modifications to the project schedule, including start and completion dates, milestones, or any other time-related aspects. 3. Change in cost: When there are changes in the project scope or unforeseen conditions arise during construction, it often results in changes to the project cost. This type of change order addresses the adjustments in the contract price or any additional costs incurred due to modifications. 4. Change in terms and conditions: In certain situations, the contract terms and conditions may need to be revised due to various factors such as regulatory requirements, changes in laws, or other unforeseen circumstances. 5. Owner-initiated change orders: These change orders are requested by the owner of the project and may include modifications to the design, materials, finishes, or any other aspect of the construction project. 6. Contractor-initiated change orders: Contractors may encounter situations where changes are necessary to mitigate unforeseen conditions, correct errors or omissions, or improve project outcomes. Contractor-initiated change orders must be supported by valid justifications. In conclusion, a Maryland Construction Contract Change Order is a critical tool in the construction industry that enables modifications to an existing contract. By clearly documenting changes, it helps maintain transparency and ensures all parties involved are on the same page. The various types of change orders cater to different circumstances, allowing for flexibility and adaptability during the construction process.