Why Change Request Orders must be in Writing

Frequently, it seems every job require some changes to its original valid contract. This is usually the nature in the construction business. Frequently, contractors ponder if they can make the necessary changes to prevent the job held up without written signatures and approval from both parties. Never do this unless you are prepared to do the work for free. Change request orders must be in writing and signed or agreed upon by both parties. Get everything written before the work on the changes resumes. Do not rely on verbal or say so from anyone without proper written documentation.

The legal system runs on paperwork and therefore it is common knowledge that written and signed documents can stand up well on its ground rather than the he said or she said verbal commitments.

Come billing time, property and homeowners typically can argue or deny over a change request order that they have previously agreed upon. But with attached signed copies of the change request forms, you can shield your contract invoice with no disagreements over the amount you are billing.

Who can Initiate a Change Request Order

The change request order forms can come from the owner, its representatives, the architect or engineer, or the contractor and a subcontractor. As we have discussed in What is a Contractors Change Request, your original contract must have the written change request provision for it to be very effective on unforeseen changes.

Some Important Tips in Documenting a Change Request order

Be sure to add the extra time necessary to complete the change request order. Completion dates stipulated in the original contract will have changes due to the extra work order duly agreed upon. This will become significant when the client sues you for damages for taking too long to finish the project. Then you will realize that the delay was caused by the change request orders. Include small details of changes that do not even cost anything or a decrease in price like a change in the color of a roofing material or a cut off from a wood flooring job. A change like this might need the extra time for a worker in your company.

There might be more disputes and adversarial positions that can arise out of perceived changes in a construction project that are without documentation. Sometimes, aggressive contractors threaten work stoppages and slowdowns if they don’t get paid. On the other hand, there are domineering owners who can assert that the unknown conditions and extra features, or the expanded project per se are already covered by the original contract price.

A simple alteration job for a lateral support for example, can change the route of a surface drain to a more dangerous location and expensive job. There are shop drawings, detailed plans, materials specifications and installation requirements that were not known during the bidding process. These changes would need re-costing and proper documentation.

There can be new instructions that can arise instantly in the construction field through the owner’s representative, the architect, or the engineer. Without proper documentation, a contractor may have no recourse but to make the changes or get thrown off the job. In an ensuing legal battle, the contractor can have a valid claim for extras if it was properly documented.

In some cases, informal change requests can also be backed up by the full force of law but on most circumstances, the impact of changes is ignored by the courts and claims are not enforced.

Today, construction companies follow standard procedures before additional work or a deduction in work is authorized. A change in time and dollar cost must be fully described and submitted in writing. It must be submitted in advance several days before the work can be scheduled and signed by designated people, reviewed and approved by both parties. It must provide sufficient time to plan and execute the changes before resuming the project.

There are other complicating issues that most contracts fail to anticipate. There are contracts that require an affected third party to sign a change request order like a surety or bonding company, a construction lending bank, or a leasing landlord, for the improvements to the property. However, a change in the scope of work between subcontractors must first be signed by the prime contractor, before it is submitted for approval.

Once a change is associated with safety and health concerns or the building code requirements, permits may need to be obtained before the work can begin. There are contractors who bid on plans that sometimes do not comply with building code requirements. But in the process of construction, the contractor can ignore the plan and follow building code requirements which would cost him more than the bid price. However, there were cases in courts where it was ruled in favor of the contractor and payment was more than the contract price. Documenting change request orders is still the best solution to these situations.