What You Need to Know About Change Orders Part 2
Whether it’s building permits, labor costs, equipment needs, or materials, there are many reasons why a change order is a necessary evil in order to complete additional work on a project. In the first section, we explained the basics in regard to change orders. In this section, we will explain many of the most important requirements that need to be met in order to apply for this adjustment. If you are working on a project and your contract needs to be amended, contact a Miami construction attorney today.
The Goal of a Change Order
Although requesting an amendment to a contract sounds like a hassle, the primary goal is to for both contracting parties to mutually agree on the total cost and changes needed to a project. Equally important, both contracting parties need to agree on the best way to implement these changes to the project. It’s important that the change order clearly defines the strategy that will be implemented in order to achieve this adjustment to the project.
The change order request process involves many requirements. For example, the change order application will have a deadline. When an issue is uncovered on a project, the change order will need to be submitted shortly after discovery. It’s also important for contractors to not perform any of this work until the change order has not only been submitted, but also agreed upon by all the parties under contract.
Submitting the Right Paperwork
Along with a change order request, the contractor will need to submit a formal notice of the modifications that are needed. This information allows the owner to review the proposed changes and determine whether or not the adjustments can be accommodated. The owner will evaluate the finances that would be allocated to the adjustments and the project schedule.
It’s important that the contractor details how the modifications differ from the original contract. This includes an itemized list of labor, equipment, and materials costs, the fiscal total of the proposed change, and an overview of the modification and how it affects the completion date.
If you would like to speak with one of our Miami construction attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.