Addressing change orders and change directive in construction

On Behalf of | Jul 30, 2024 | Construction Law |

When you engage in a construction project, you need to scrutinize any contracts pushed your way so that you know exactly what you’re getting into. And don’t be afraid to negotiate key terms. Although the contract may seem reused or boilerplate, you need to advocate for an agreement that suits your needs and promises to bring your vision of the future into reality.

Yet, even with a strongly negotiated contract, your project is bound to face unexpected challenges. Supply deliveries can be delayed, bad weather can halt progress, and modifications to what you want out of the project can all threaten the viability of the original contract. This is where change orders come in.

What is a change order?

Simply put, a change order is a modification to an existing construction contract. In most instances, these modifications change the scope of the work to be conducted by the construction company, such as when you want to change the design of the project, or they change the timeframe during which the project must be completed. Before a change order can be effectuated, though, you and the construction company must agree to its terms, as it becomes contractual in nature.

But what if you and the construction company can’t agree on how the work should be changed?

The construction change directive

Your original construction contract may have a construction change directive provision. This term allows you to unilaterally modify the work being conducted. As a result, the construction company must adhere to your requests, even if they don’t agree to it. You’ll still have to pay them for the additional work to be performed, of course, and the construction company may be able to sue you if they disagree with the work to be performed or if they think that the required changes fundamentally change the obligation under the original contract.

However, they’ll still need to perform the work that’s been directed in adherence to a timeline usually established by the architect.

Before relying on this provision of your contract, it’s a good idea to discuss it with your attorney so that you fully understand how it can be utilized under your set of circumstances.

How to avoid construction disputes

Avoiding construction disputes is a massive topic that requires more attention than we can give here. However, you might be able to head off some conflict by engaging in thorough communication with your construction company and fully reading and understanding the terms of your construction contract.

If change order issues arise, consider whether the construction company’s words or actions have waived formal change order or construction change directive requirements. Also, be sure to document everything. You don’t want to be in a position where you and the construction company have conflicting accounts of events that are challenging for a court to decipher.

Don’t get taken advantage of in your construction dispute

Hopefully you’ll be able to prevent a major construction dispute from arising. But if you can’t, then you need to be prepared to protect your interests as you navigate resolution through negotiations or litigation. This requires gathering evidence and developing a firm understanding of the law. Only then will you know which course of action best shields you from a bad outcome.

So, if you’re facing a construction dispute, then now is the time to develop your legal strategy and surround yourself with the guidance and resources you need to be successful.

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