We all know the importance of a complete and detailed construction contract. But what happens when you need to make changes to your current construction project? All parties involved need to take the time to update the contract properly.
Amendments to a construction contract are oftentimes called a change order. We have three crucial reasons to speak with phoenix construction litigators about change orders in your construction contract.
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Additive Change Orders
Additive change orders occur when there are any additions to a project such as adding a window or even just changing the material used. Of course, these additions could add in additional costs. All of this needs to be addressed in the contract in full detail, including if it will take extra time, end up saving time, and how it is impacting the budget.
Deductive Change Orders
A deductive change order is when work is deleted. This could be deleting a window because of a lack of space or taking away a small step. These changes will most likely decrease the overall price. Just like with an additive change order, a deductive change order will need to be documented in full detail in the current contract.
Most contracts include a specific clause in the contract detailing procedure along with other important details such as the timeline, completion date, and agreed price. Also, all companies being used should be included in the clause.
Anytime there are any changes dealing with these specific details, it needs to be amended in the construction contract. This could be due to a change in completion date or changing the company used for a specific part of the project.
Of course, just like when amending any contract, all parties involved must agree and sign off on all of these changes in the construction contract. Proper documentation will always come in handy if a contract dispute does arise.