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Once your construction contract is in place and you’ve begun work, something will inevitably change once construction is underway. However, a verbal agreement with the contractor isn’t enough to protect your business from how this change will affect the final project’s cost, timeline, and design. How do you handle these change requests transparently and ethically while ensuring everyone involved with the project knows and agrees to the change? Formal change order requests allow you to officially change the project scope and understand its impact on the final deliverable. Our construction attorneys in Orlando can help you develop a formal change order request process to ensure your project remains on track and all parties agree. Learn more about how change orders work and how to handle them below.

What is the Purpose of a Change Order Request?

According to Florida Statute 713.01(11), a change order is a request to add or delete the labor, services, or materials to improve real property from a previously agreed upon contract. Effective change order requests ensure all parties agree to the proposed changes and understand how the change will impact the project’s scope of work, timeline for completion, and cost before the project is completed. Change order requests allow flexibility and fluidity during a project while maintaining structure and balance.

What Does the Change Order Process Look Like?

The process for submitting and requesting a formal change order should be included in the construction contract. It’s important to have a construction attorney in Orlando review your change order request process before it’s enacted. Here are the typical steps for a change order request:

Review

The first step in requesting a change order is to review the construction contract for the project’s original scope and locate the process for submitting a change order. A well-drafted construction contract will include a detailed process for submitting a change order and a sample change order form.

Request

After you’ve reviewed the contract, use the outlined steps to submit the change order request to the relevant parties, such as the contractor, business owner, and architect. Ensure the change order has a detailed description of the proposed change and the estimated impacts the change will have on the final project.

Evaluate

Once the change order is received, the contractor will make a detailed evaluation of the request and how it will impact the various elements of the project, such as scope, timeline, and cost. The contractor may make a Request for Information to the subcontractors responsible for performing the work to determine project cost, supplies needed, and timeline for completion. The change order should specify a relevant timeframe to complete this evaluation.

Respond

The contractor takes the information gathered during the evaluation and submits a report to the property owner and architect (and other related parties). This response should include a detailed breakdown of how the proposed change will impact the project, including the extended time needed to complete it, projected cost increases, and required supplies. Any changes to the payment schedule should also be included.

Approve and Sign

If all parties agree to the terms, the change order is signed as an official amendment to the original contract. Then, the contractor will notify the relevant parties about the change.

Types of Change Orders

Here are the most common types of change orders:

Errors and Omissions

This change order request addresses gaps in the project scope, timeline, or materials that should have been included in the original contract. These change orders should be made before the project has entered the construction phase.

Additive

These types of change requests add aspects to the project’s original scope. They almost always include additional time, materials, and costs.

Deductive

Deductive change order requests remove various elements from the original project scope. While deductive changes can decrease the project cost or labor, this isn’t always the case. The contractor and property owner must understand all the impacts of changing the project.

Design Change

Design change requests don’t affect the project scope, price, or timeline. However, all project changes should be documented to ensure accuracy and hold every party accountable.

Unfavorable Conditions

This change order is made in response to unforeseen circumstances during the construction phase. This could include project delays due to natural disasters, flooding where the project is supposed to be completed, shipping delays, hazardous materials that need to be disposed of, or trees that must be removed before the project can start. 

Learn to Handle Change Order Requests with a Construction Attorney in Orlando

Orlando construction attorney Benjamin Shane Boutty has over twenty years of experience in the construction industry and understands the nuanced complexities of change orders. Whether you’re a new contractor or expanding your business to a new facility, we can help set up your business with a solid legal foundation. Contact us at 407-622-1395 or schedule a consultation to discuss how we can help you bring your business to the next level.