Before construction projects start in Tennessee, the companies involved need to go through extensive planning. First, people need to establish the scope of the project and what needs to be accomplished. Then, contractors need to determine the materials needed for the project and estimate labor costs. After the contractors finish estimates, the contractors and customers sign contracts based on those estimates.
Contractors cannot predict everything that may happen throughout a project when they provide their estimates before the project begins. Original specifications may be inaccurate as the project progresses. There can always be unforeseen circumstances that arise during the project, which may be out of the contractor’s control. There could be delays in receiving materials, original schedules may be ambitious and the project may fall behind.
Basic aspects of change orders
When circumstances change the original plans, all parties need to reach an agreement on how to proceed. This is generally done through change orders, which change the original contract. Change orders can change costs, the schedule, the scope of work and other aspects of the original contract.
To do this properly, change orders need to state the changes to the project and the basis for the needed change to the pursuant original contract. They should also specifically state any additional costs for all subcontractors, changes to the completion date for the project and any other changes to the original contract.
Change orders are relatively common for construction projects in Tennessee. However, these change orders often lead to increased costs and can lead to future disputes. Change orders need to be drafted with the specificity of the original contract to clearly state the obligations and expectations of the companies involved in the project. Experienced attorneys understand the importance of well-written change orders and may be a useful resource.
