1 / 21

Change Order and Change Order Disputes

Change Order and Change Order Disputes. By Mick Martin MRM Enterprises. Definition of Change Order :. A change order is essentially an agreement to modify the parties contract. In this respect a contract modification is binding so long as both parties consent to the change.

lremy
Download Presentation

Change Order and Change Order Disputes

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Change Order andChange Order Disputes By Mick Martin MRM Enterprises

  2. Definition of Change Order: • A change order is essentially an agreement to modify the parties contract. In this respect a contract modification is binding so long as both parties consent to the change.

  3. What is a Change Order? Some common factors leading to change orders: • Delays • Specific Design Alterations • Lack of Coordination • Building code compliance

  4. What a Change Order is NOT: • Interpretation of General Concepts of the Contract • Device for Contractor or Client to get “Something for Nothing” • A way to get out of a screw-up • An after thought of specific work performed

  5. Get your Change Order in Writing • Verbal agreements are not binding on any party • Use specific language rather than general terms • Include signatures and dates of all parties • Copies to all parties

  6. Performance vs. Non-Performance

  7. Getting the Change Order Right • Opportunity to do a better job and make more money • Go above and beyond • Be fair • Communication is key

  8. Getting the Change Order Done • Expedite the work in a timely fashion according to contract / change order • Stick to the contract / change order • Make sure all workers are instructed as to the specifics of the change order • Get Paid

  9. Addition or Subtraction

  10. Add-ons (Additions) • Any addition to the original contract, addendum or amendment • Changing light bulbs to adding an east wing • Common sense is not always so common

  11. Knock-offs (Subtractions) • Any deletion to the original contract, addendum or amendment • Change in material, money or time • Always under promise and over deliver

  12. To Claim Or Not To Claim

  13. What is a Claim? • Request for adjustment of contract terms • Request for payment of money • Request for extensions of time

  14. Contract Dispute Process • Resolution • Mediation • Arbitration • Litigation

  15. Resolution • Resolve the claim without a 3rd party • Contractor and client come to an agreement • Work is performed – contractor is paid • Client is satisfied

  16. Mediation • Third party assistance in attempt at resolution • Non-binding • Mediator unbiased

  17. Arbitration • Provisions enforceable by statute • Inclusion of arbitration guidelines in construction contract

  18. Litigation • Involvement of the judicial system • Designed to produce accurate and fair outcome • Method can be costly and time consuming

  19. Obstaclesare those frightful things you see when you take your eyes off your goal” ~Henry Ford Inventor and Founder of Ford Motor Company

  20. Get It In Writing!

  21. Questions?? Thank you!

More Related