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 Phoenix Arizona Construction Contract Change Order refers to a document specifically used in the construction industry to modify or update the terms, specifications, or scope of work outlined in an existing construction contract or agreement. It serves as an official record of any changes made during the construction project and ensures that both the contractor and the client are on the same page regarding the modifications. In Phoenix, Arizona, change orders are quite common in construction projects due to various reasons such as design alterations, unforeseen circumstances, client requests, or even mistakes in the initial contract. These change orders are essential to keep the project on track, maintain transparency, and avoid any potential disputes or conflicts between the parties involved. Important keywords to consider for a Phoenix Arizona Construction Contract Change Order include: 1. Construction Contract: Refers to the legal agreement between the client (typically the property owner) and the contractor (construction company or individual) outlining the scope of work, timeline, specifications, and payment terms for the construction project. 2. Change Order: A written document that outlines modifications to the original construction contract or agreement. It specifies the nature of the change, associated costs or credits, any adjustments to the project schedule, and the approval process. 3. Modification: Refers to the alteration, adjustment, or revision made to the initial terms or specifications of the construction project. 4. Scope of Work: Outlines the detailed tasks, activities, and deliverables that need to be completed within the construction project. Changes to the scope of work in a change order may involve adding/removing work, altering due dates, or modifying technical requirements. 5. Design Alterations: Pertains to any changes required in the original design plans, blueprints, or architectural drawings agreed upon in the initial contract. These alterations may include revisions to room layout, materials used, or structural modifications. 6. Unforeseen Circumstances: Refers to unexpected situations that arise during the construction process, such as the discovery of hazardous materials, soil instability, or issues with existing infrastructure. Change orders may be necessary to address these unforeseen circumstances adequately. 7. Client Requests: Includes any changes or additional requests made by the client during the construction project. These requests can range from minor modifications to major scope changes, resulting in the need for a change order. Different types of Phoenix Arizona Construction Contract Change Orders can be categorized based on the nature of the change, such as: 1. Scope Change Order: Involves modifications to the project's scope of work, which can include adding or removing tasks, changing specifications, or adjusting completion dates. 2. Design Change Order: Contains revisions related to the design plans, architectural elements, interior layouts, or finishes. 3. Cost Change Order: Focuses primarily on adjusting the financial aspects of the construction project, including changes in materials, labor costs, or unforeseen expenses. 4. Time Change Order: Primarily addresses adjustments to the project schedule or timeline due to unexpected delays, extensions, or acceleration requests. In conclusion, a Phoenix Arizona Construction Contract Change Order is a crucial document in construction projects that records modifications made to the initial contract. It helps to maintain transparency, manage expectations, and avoid disputes between the contractor and the client. Understanding the various types of change orders allows all parties involved to effectively communicate and implement necessary project changes.