Anyone who has ever built a home or a commercial building knows that the best laid plans are quickly torn asunder by unforeseen changes. We have noted that it is far more common to ignore the modification term in almost all construction contracts that it is to comply with that term. Under the requirements of most construction contracts, modifications must be spelled out in a written change order and signed off by the parties. In the environment of a construction site, that often does not occur. This almost invariably leads to disputes that could otherwise be avoided, and work to the benefit of neither side.
When working on site as a contractor, subcontractor or owner, it is in your best interest to make sure that all change orders are spelled out in writing, numbered consecutively, list the additional costs or rebates, are dated and signed by all of the parties pursuant to the contract. In this way a running record and paper trail is kept of the costs of the project, and at the end of the project the total bill will be clear, free from arguments or misunderstandings that occur all too often. It is a pain to do this, with the contractor trying to orchestrate the work of several different subcontractors simultaneously, and the owner being on the site some of the time, but not at the right time, but consider that headache when compared to the headache of litigation that could have been avoided.
