Sacramento New Home Construction Builders handle change orders
Construction projects often experience changes in scope, schedule and costs. While there is no way to completely prevent change orders, proper documentation can minimize the impact of a dispute when they do occur. Ideally, all change order requests should be documented in writing and approved by the project engineer. Including a clause in the contract that allows secondary authorization for change orders can also prevent costly mistakes.
The resident engineer must approve all labor, equipment and materials required to perform extra work. A cost analysis of the contractor’s proposal should be prepared and filed with the project records to justify the compensation. For force account work, the resident engineer must also review and approve the method of performing the extra work.
Sacramento New Home Construction Builders handle change orders efficiently, ensuring that modifications to the original plans are managed smoothly. They communicate clearly with clients about costs and timelines associated with these changes, minimizing disruptions. This adaptability helps maintain project momentum while ensuring the final result aligns with the homeowner’s vision.
When a time adjustment is requested, the resident engineer must evaluate whether it will negatively affect project performance and meet contractual requirements for completion. If the change is not a negative change, the contractor should be given the opportunity to negotiate an agreed adjustment. Unless the resident engineer has reason to believe that the contractor is inflating its bid prices, the proposed adjustment should be accepted.
How do Sacramento New Home Construction Builders handle change orders?
If the contractor cannot reach an agreement with the resident engineer, the resident engineer must make a final determination of compensation. The estimate of the cost of the extra work should be determined by preparing an independent force account or bid item cost analysis and comparing it to the contractor’s estimated price. The estimated cost of the extra work should be paid as a unit price, payment adjustment or lump sum.
A change order should state the scope of work, including any supplemental change orders and their costs. It should also include the justification for the change, the estimated effect on the contract time and the contractor’s proposed method of completing the additional work. The change order should describe any changes in contract plans, drawings or specifications.
Change orders should identify the authority to issue the change, which may be delegated according to Table 5-4.2, “Disputes Resolution Authority–Entitlement,” in this manual. Unless a change is for work authorized as part of a previously approved change order or change directive, the Division of Construction must review and approve all nondelegated change orders.
When a dispute over a change arises, it’s best to get the issue in writing and to have the change order reviewed by an experienced construction attorney. This can help to reduce the risk of expensive litigation, which can derail the progress of the project.
A California construction law firm that has experience handling change order disputes can assist in resolving the dispute through arbitration or mediation. This can be faster, less expensive, and help maintain business relationships. When these options are not available, a lawsuit may be necessary. A reputable construction lawyer can help to manage the process of a change order dispute and ensure that all parties are treated fairly. The best way to avoid a change order dispute is to prevent it from happening in the first place by having a well-drafted contract and regular project meetings.