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.
Wisconsin Construction Contract Change Orders are a crucial aspect of construction projects in the state of Wisconsin. It refers to the process of modifying or amending the original terms, scope, or specifications of a construction contract. A change order is a legally binding document that outlines the agreed-upon changes between the contractor and the project owner. Change orders may arise due to various reasons such as design modifications, unforeseen site conditions, owner requests, or changes in project requirements. By initiating a change order, both parties ensure that any necessary adjustments are made to the contract to accommodate these changes. In Wisconsin, there are several types of construction contract change orders, depending on the nature of the modification required. These may include: 1. Scope Change Orders: These change orders involve alterations to the project's scope of work. They can include additions, deletions, or revisions to specific aspects of the project, such as materials, methods, or deliverables. 2. Design Change Orders: When the original design plans need to be modified, design change orders are used. These changes may be due to architectural, structural, or engineering concerns that require adjustments to the original plan. 3. Time Change Orders: Instances where there is a need to extend or compress the project timeline due to unforeseen circumstances, delays, or acceleration can lead to time change orders. These modifications allow for adjustments to the project duration and associated deadlines. 4. Cost Change Orders: Cost change orders are issued when there are changes in the project's estimated or actual expenses. These changes can result from alterations in the scope of work, material costs, labor expenses, or other unforeseen circumstances impacting the project's budget. 5. Owner-Requested Change Orders: Sometimes, project owners may request changes to the original contract due to personal preferences, operational efficiencies, or new insights. Owner-requested change orders allow for modifications aligned with the owner's specific requirements. Wisconsin's construction contract change orders must comply with the relevant laws and regulations of the state. It is important for both contractors and project owners to thoroughly review and negotiate the terms of change orders avoiding disputes or disagreements during the construction process. Effective communication, documentation, and mutual consent are vital for successful implementation of change orders while ensuring the project runs smoothly and remains legally compliant.