Construction projects rarely fall apart because of one mistake. Often, litigation begins with a seemingly minor issue that is assumed not to matter, only to cause a huge problem. One of the most frequently overlooked areas is change order requirements.
A contractor may discover unexpected site conditions, while an owner may request additional work after the original agreement is signed. If the parties handle those changes informally through phone calls, text messages or verbal promises, disagreements can arise over whether the additional work was actually authorized and who should pay for it.
Why change orders cause litigation
A change order creates a record of how the parties agreed to modify the original construction contract. Depending on the contract, it may identify changes to the scope of work, price, materials or completion date.
Problems can arise when parties proceed without following the contract’s required procedure. For example, a contractor might perform extra work after receiving a verbal instruction from the property owner. The owner may later argue that the work was included in the original price or that the person giving the instruction had no authority to approve additional costs.
Written change orders can help prevent this uncertainty. They should clearly describe what is changing and, where applicable, identify the additional cost and effect on the project schedule. Contractors should also review notice provisions because some agreements require written notice of a claim within a specific period.
Ignoring these requirements can turn a manageable construction disagreement into expensive litigation. Before making changes to the work, both parties should understand what their contract requires and document the agreement accordingly.
A legal professional with experience in construction law can help parties understand their contractual obligations, comply with notice requirements and address potential disputes before they escalate into costly litigation.