Contractor changes: Overview, definition, and example
What are contractor changes?
Contractor changes refer to modifications or adjustments made by a contractor to the scope of work, project schedule, or contract terms during the course of a construction project or service agreement. These changes can be initiated by the contractor or requested by the client (or project owner) for various reasons, such as unforeseen issues, design changes, additional work, or regulatory adjustments.
Contractor changes may involve alterations to the price, timeline, or work specifications and are usually formalized through change orders or amendments to the original contract. They are a common aspect of construction projects, where variables like materials, weather, or site conditions may require flexibility to keep the project on track.
Why are contractor changes important?
Contractor changes are important because they help ensure that a project can adapt to unexpected circumstances while keeping the work moving forward. By formalizing these changes through clear documentation, such as change orders or contract amendments, all parties involved have a clear understanding of how these changes will impact the overall project.
For the contractor, the ability to request changes provides flexibility to address unforeseen challenges and ensure the project meets the necessary standards. For the client or project owner, understanding and agreeing to contractor changes ensures that the project stays on budget and within the desired timeframe, even if adjustments are required.
Understanding contractor changes through an example
Imagine a construction company, XYZ Builders, is hired to build a new office building. The contract specifies a set scope of work, including materials and timelines. However, during the construction process, the contractor discovers that the original building foundation is unstable and needs additional reinforcement to ensure the safety of the structure. The contractor submits a change order to the client, requesting additional funds and an extended timeline to address this issue.
In another scenario, the client decides they want to change the layout of the office building's interior after reviewing initial designs. The contractor then prepares a change order outlining the new work requirements, such as relocating walls and altering electrical wiring. The change order specifies the additional costs and the impact on the project schedule, and both parties agree to the new terms.
An example of a contractor changes clause
Here’s how a contractor changes clause might appear in a construction contract:
“In the event that either party requests a change to the scope of work or any contract term, a formal change order must be issued and agreed upon by both parties. The change order shall specify the nature of the change, any impact on the project price, and any adjustments to the project schedule. No changes shall be made unless both parties have provided written consent to the changes through an executed change order.”
Conclusion
Contractor changes are an essential part of managing construction projects and service agreements. These changes provide flexibility to address unforeseen issues or evolving client needs while maintaining clarity and accountability between the contractor and the client. By formalizing these changes through change orders or contract amendments, both parties can ensure the project remains on track and that any adjustments to cost, scope, or schedule are mutually agreed upon. Understanding how contractor changes work helps both contractors and clients manage expectations and prevent conflicts during the course of a project.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.