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.
Michigan Construction Contract Change Order is a legal document that modifies an existing construction contract for a project in the state of Michigan. It provides a framework for making modifications, adjustments, or additions to the original agreement between the parties involved in a construction project. A Change Order outlines the changes requested by either the owner or the contractor, and it becomes an integral part of the original contract. It serves as a written record of the agreed-upon changes and helps avoid potential disputes or misunderstandings between the parties. When executed properly, a Change Order ensures that all parties involved understand the modifications and their implications, as well as any adjustments required to the contract price, timeline, or scope. Michigan Construction Contract Change Orders may encompass a wide range of modifications, including but not limited to: 1. Scope changes: This type of Change Order involves alterations to the project scope, such as adding or removing work, changing specifications, or adjusting quality requirements. 2. Schedule changes: Change Orders related to schedules involve modifications to project timelines, milestones, or deadlines. They may be necessary due to unforeseen circumstances, delays, or external factors impacting the construction process. 3. Price changes: These Change Orders deal with adjustments to the contract price. They may arise from revised material costs, labor rate fluctuations, changes in governmental regulations, unforeseen site conditions, or other factors impacting project expenses. 4. Design changes: Design-related Change Orders focus on alterations to the original plans, drawings, or specifications. These modifications are typically necessary when the original design is found to be inadequate, impracticable, or when unexpected situations arise during the construction process. 5. Material changes: Change Orders related to materials involve adjustments to the type, quality, or quantity of materials specified in the original contract. This may occur if the availability of certain materials changes, or if alternatives become more appropriate during construction. 6. Work suspension or termination: In certain situations, construction projects may need to be temporarily suspended or terminated entirely. Change Orders related to work suspension or termination define the terms under which the project halts temporarily or comes to a definitive end, including any associated costs or compensation. Michigan Construction Contract Change Orders are legally binding, requiring the agreement and consent of all parties involved. A thorough understanding of the original contract terms and applicable laws is essential to ensure proper execution and avoid potential disputes. It is recommended that parties consult with legal professionals or construction experts to draft and execute Change Orders accurately, protecting their rights and interests throughout the project.
