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 construction contract change order is a document that outlines and authorizes modifications or alterations to an existing construction contract. In Tarrant, Texas, a construction contract change order is a legally binding agreement that amends the original terms and conditions of a construction project. It is an essential tool used to manage changes and ensure transparent communication between the contracting parties. The construction contract change order includes relevant information such as project details, the date of the original contract, the scope of work affected by the change, reasons for modification, associated costs, and a revised timeline. Through this document, both the contractor and the client can mutually agree on changes and adjust the project accordingly. Various types of Tarrant, Texas construction contract change orders may occur depending on the nature of the change required. Some common types include: 1. Scope Change Order: This type of change order is initiated when there is a need to add, remove, or alter the scope of work agreed upon in the original contract. It may involve changes in project specifications, design modifications, or adjustments to permit requirements. 2. Cost Change Order: When there are unforeseen circumstances or additional work required, a cost change order is issued. This document clearly details the new costs associated with the change, including materials, labor, and any other expenses related to the modification. 3. Time Change Order: A time change order relates to alterations in the project schedule. This can be due to unexpected delays, weather conditions, or other external factors. The document specifies the revised timeline and any potential effects on subsequent project milestones. 4. Contractual Change Order: Sometimes, changes in legal or contractual obligations may necessitate a contractual change order. This type of order could involve adjustments to payment terms, insurance requirements, or other contractual obligations between the parties involved. It is important for both parties to carefully review and agree upon the terms specified in the construction contract change order to avoid disputes or misunderstandings. These change orders play a critical role in maintaining the integrity of a construction project and protecting the interests of all parties involved.