Proper Handling of Change Orders on Government Construction Contracts

Construction workers and contractors play a pivotal role in shaping our communities, both at the local and federal levels. At Arnold & Willis, we regularly represent and work with both Tennessee-based construction companies and construction companies nationwide managing federal government contracts.

Construction workers and contractors play a pivotal role in shaping our communities, both at the local and federal levels. At Arnold & Willis, we regularly represent and work with both Tennessee-based construction companies and construction companies nationwide managing federal government contracts.

These projects are not only crucial for the success and safety of our communities but are also vital for contractors who put in years of hard work to secure and execute government-level construction work. Maintaining project timelines and budgets is essential, and as any construction professional knows, construction work doesn’t always go according to plan. Change orders are crucial for accommodating these changes and keeping projects on track. Ensuring these change orders are managed correctly is a legal compliance matter that requires the careful attention of a construction legal team.

What is a Change Order?

A change order is an amendment to a standing construction contract that revises the scope of work in response to alterations or unexpected events throughout the course of work. These orders are submitted and must be agreed upon by all parties involved to modify the work already established under the contract—which can include changing timelines, funding, resource budgeting, or other elements of the project.

For a change order to be valid, both the owner and the contractor must agree on all the terms. Common examples of change orders include adjustments to structural design to account for structural integrity, minor adjustments in design such as windows or doors that were lacking in the initial design, and extending the timeline due to unforeseen weather or elemental impacts, among others. 

There are two main types of change orders: Additive change orders that add to the work and deductive change orders that remove portions of the work. These are sometimes necessary to improve the work or manage timelines.

Documentation is Key in Government Construction Change Orders

Effective management of change orders relies heavily on thorough and accurate documentation. This documentation should detail any conditions related to the change, identify any workers or managers involved with incidents necessitating the change, and be provided to the relevant owners and managers in a timely fashion.

The initial construction contract's notice provisions will dictate the necessary steps and timing for change orders. The first step of any change is to refer back to the original construction contract to confirm the stipulated details for when and how change orders should occur. Adhering to the specified notification, documentation, and filing processes is a necessary step in the process. Neglecting these details or attempting to handle changes independently can jeopardize the entire project and potentially future opportunities for you and your construction team.

Legal Counsel for Government Construction Projects and Change Orders

Arnold & Willis regularly represent construction companies and contractors engaged in large government contracts. We carefully draft and review construction contracts to ensure they are accurate and comply with the necessary legal standards and regulations. Change orders, while often necessary, require careful handling to protect the interests of all parties involved. If you are preparing to sign a government construction contract or need assistance managing a dispute related to one, contact Arnold & Willis. We are committed to protecting the integrity of your work and your interests.

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