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 New Jersey Construction Contract Change Order is a legal document that outlines any modifications or alterations to a construction contract in the state of New Jersey. It is a written agreement between the owner of a construction project and the contractor, serving as an addendum to the original contract. Change orders are a common occurrence in construction projects as unforeseen issues or modifications to the scope of work may arise during the course of the project. They allow for flexibility and accommodate adjustments that are necessary to ensure the successful completion of the construction project. The New Jersey Construction Contract Change Order serves to formalize any changes in the scope of work, schedule, materials, or costs associated with the project. It provides a clear record of the agreed-upon changes and becomes an enforceable part of the original contract. Types of New Jersey Construction Contract Change Orders: 1. Scope Change Order: This type of change order occurs when there is a modification to the original scope of work. It may involve additional work not initially included in the contract or the removal of certain tasks from the project. 2. Schedule Change Order: A schedule change order is issued when there are adjustments needed in the project timeline. This could be due to delays, weather conditions, or unforeseen circumstances that impact the project's progress. 3. Material Change Order: A material change order is required when there is a need to modify the materials specified in the original contract. It may involve using different grades or types of materials or changing the quantity required. 4. Cost Change Order: Cost change orders are issued when there are changes to the project's costs. This could include adjustments to the contract price due to unforeseen site conditions, changes in material costs, or variations in labor costs. 5. Design Change Order: A design change order is necessary when there are alterations to the original design plans. It could involve revisions to architectural drawings, engineering specifications, or changes requested by the owner. It is important to note that any changes made through a change order require the mutual agreement of both parties involved. Both the contractor and the owner must agree to the proposed changes, and the change order must be properly executed and signed to be legally binding. In conclusion, a New Jersey Construction Contract Change Order is a critical document that allows for modifications to be made to the original contract, providing a formal and enforceable record of any changes to the scope of work, schedule, materials, or costs. Different types of change orders in New Jersey include scope change orders, schedule change orders, material change orders, cost change orders, and design change orders.