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 Mexico Construction Contract Change Order is a legal document used in the construction industry to modify or amend the original terms and conditions of a construction contract. It outlines the changes requested by either the owner or the contractor, including modifications to the scope of work, materials used, project schedule, or any other relevant aspect of the construction project. In New Mexico, there are several types of Construction Contract Change Orders that can be issued: 1. Scope Change Order: This type of change order is used when there is a modification to the scope of work defined in the original contract. It may involve adding or removing certain tasks, altering project specifications, or changing the project's design. 2. Time Change Order: Also known as a schedule change order, it is issued to adjust the project timeline. This could be due to unforeseen circumstances, delays, or changes in the construction schedule. 3. Cost Change Order: This type of change order is utilized when there are alterations to the overall project cost. It can include adjustments to material prices, labor rates, or additional expenses incurred due to change in scope, design modifications, or any other factors impacting the project budget. 4. Design Change Order: A design change order is issued when there is a need for alterations to the original design proposed in the construction contract. This could be due to revisions requested by the owner, changes desired by the contractor, or adjustments required to comply with local regulations. 5. Authority Change Order: An authority change order is applicable when there is a change in the key decision-making individuals within the project. For example, if the project owner changes or if there is a shift in the responsible party overseeing the project, a change order is required to update the contract accordingly. 6. Emergency Change Order: This type of change order is used in critical situations that require prompt action. In case of emergencies, like unforeseen safety hazards or structural issues, an emergency change order is needed to address the immediate concerns and necessary modifications to the original contract. New Mexico Construction Contract Change Orders are crucial documents for accurately documenting and managing modifications in construction projects. They help ensure that all parties involved are aware of the changes, agree to the adjustments, and can proceed with the project accordingly. It is essential to have a standardized process for issuing and documenting change orders to maintain transparency, manage project costs, and avoid disputes.
