Michigan Construction Contract Change Order

State:
Multi-State
Control #:
US-01558BG
Format:
Word; 
Rich Text
Instant download

Description

Change Orders are instructions to revise construction plans after they have been completed. Change orders are common to most projects, and very common with large projects. After the original scope (or contract) is formed, complete with the total price to be paid and the specific work to be completed, a client may decide that the original plans do not best represent his definition for the finished project. Accordingly, the client will suggest an alternate approach.


Common causes for change orders to be created are:


" The project's work was incorrectly estimated

" The customer or project team discovers obstacles or possible efficiencies that require them to deviate from the original plan

" The customer or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project

" During the course of the project, additional features or options are perceived and requested.

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How to fill out Construction Contract Change Order?

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FAQ

In a construction project, a change order is typically created by the contractor or the project manager. They initiate the process when changes arise that affect the original construction contract, such as alterations in project scope, timeline, or costs. It's essential to have a documented agreement to avoid disputes later, and this is where the Michigan Construction Contract Change Order becomes crucial. Using a reliable platform like US Legal Forms can streamline this process, ensuring you have the right templates and expertise to produce a valid change order.

Key elements in a change order include a detailed description of the work to be performed, the rationale for the change, any adjustments to costs, and a revised project completion date. These elements provide a clear framework for the modifications. Properly documenting these details in a Michigan Construction Contract Change Order can avert potential disputes and ensure fair compensation.

A change order generally consists of several key parts, including a description of the change, an explanation of why the change is necessary, and an adjustment to the contract sum or timeline. Each part plays a crucial role in documenting the modification accurately. Including these components in a Michigan Construction Contract Change Order helps clarify expectations and prevent disputes.

The average change order percentage in construction typically falls between 5% to 15% of the total contract value. This percentage can vary due to project complexity and unforeseen circumstances. In Michigan, understanding this range can help you plan effectively and prepare for potential financial adjustments during a project.

When creating a Michigan Construction Contract Change Order, it's important to address key issues such as the reasons for the change, the impact on the timeline, and the adjustments to costs. Clear communication helps prevent misunderstandings and disputes. Documenting these elements fosters a smoother construction process and strengthens trust between stakeholders.

Presenting a Michigan Construction Contract Change Order requires clear communication and thorough documentation. Prepare a formal presentation that outlines the changes along with associated costs and impacts on project timelines. Engaging the client in a discussion about the changes helps ensure they understand the modifications and agree to proceed.

To justify a Michigan Construction Contract Change Order, clearly explain the reason for the changes, ensuring to highlight any unforeseen circumstances or client requests that prompted the adjustment. Providing supporting documentation, such as photos or timelines, can illustrate the necessity of the change. Keeping communication open with all parties helps build understanding.

The typical change order process in Michigan starts with identifying a need for changes in the original contract. Next, the contractor submits a formal request detailing the changes, which the client must review and approve. Upon acceptance, a change order document is executed, allowing for work to proceed according to the new terms.

Documenting a Michigan Construction Contract Change Order involves creating a written record that specifies the changes made, including the scope of work, costs, and any necessary approvals. Use a standard template to maintain consistency, and ensure both parties sign the documentation. This process provides clarity and protects against disputes.

To bill for a Michigan Construction Contract Change Order, ensure you have detailed the work performed and the costs associated with it. Clearly outline materials, labor, and any additional expenses that resulted from the change order. Creating an invoice that includes specific line items related to the change helps to clarify the charges for all parties involved.

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Michigan Construction Contract Change Order