A change order review is a process performed by lawyers where they check the various aspects of the contract by comparing it with the initial contract. The review process is generally done on the final draft of the change order. Based on this, the lawyers often suggest to their clients what changes must be done to adapt to the change order.
For instance, in a previous situation, when the client demands a shift in design, the contractor may also require an additional cost in the construction or the amount needed for the material change. These changes in the price must also be included in the change order. Only when the terms of both parties are clear must the document be signed.
What Must Be Considered During the Change Order Review?
During the change order review, a lawyer takes care of many aspects of the contract. First, they ensure that their party is not negatively affected in any way due to the change order. To do this, they often compare it with the initial contract and the latest government rules and regulations. There are several things that a lawyer considers during the change order review.
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The Contact Details of Both Parties
In any contract, which is a change order, the contact details of both parties, as well as necessary proof to verify the identity. This helps prevent fraud and build trust. Further, the permanent address of both parties, as well as the site of construction, is mentioned within the change order. This helps in reaching out to either the parties, a verify the area of the building.
Finally, during the change order review, the lawyer collects all these documents and related proofs to verify the legality of each term.
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The Party Requesting the Change
It is compulsory to mention which party is demanding the change within a change order. If this detail is missed, the lawyer is sure to add it during the change order review. It plays a vital role in case any complication occurs in the future.
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Description
The change order must mention the full description of the change required. This includes even minor changes, such as a change in colour or the placement of a tube light. After the construction is completed, the subcontractor or the client should not have any chance to blame the contractor for anything.
This may happen if the description mentioned in the change order is incomplete. During the change order review, the lawyer asks both parties about the exact negotiation or discussion that took place along with every detail of the planned work. They ensure that everything is mentioned in the change order. It also acts as proof of discussion that both parties must abide by.
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Change in the Pricing Structure
As per the change in description, the contractor would also need to make necessary pricing structure changes. It includes the labour cost, along with the cost of raw materials involved. The new pricing structure must be mentioned within the contract, along with a breakdown of the costs. This helps the other party get a clear idea of the cost. During the change order review, the lawyer checks whether all the pricing mentioned is within the limit. The change order is signed only if the subcontractor or the client agrees to this pricing.
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Signatures
To complete the change order, every person involved in the contract must sign it. The lawyer must ensure that all representatives sign the contract to make it legally binding. This includes the sign of the contractor, subcontractor, consumer, and if a homeowner is involved. Without valid signatures, the change order remains null and void.
During the change order review, the lawyer reviews the original contract and cross-checks the signatures to ensure no fraud.
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Date and Time on Which the Change Order Is Signed
The date and time the change order is signed are important as it marks a timeline. This is extremely important, especially if there are multiple change orders. In such a situation, the client may agree to the final product after the construction is completed.
They may say that something else was stated in the change order. However, if the change order stamps to date and time, it is legally possible to help the client understand the hierarchy for the timeline in which they were signed. In such a situation, the latest change orders are valid.
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Key Terms
- Contractor : For any construction, such as a building or within a building, a person is hired to make the necessary changes. This person is known as the contractor.
- Subcontractor : In the case of large projects, contracts often outsource their work. This person is known as the subcontractor.
Conclusion
Change order review is an important process for the contractor if they wish to avoid complications with their subcontractor or consumer. Therefore, hiring an experienced person, such as a lawyer, who has the right knowledge and understands how the review process works is essential. If you wish to hire the best team of lawyers for a change order review, check out Contracts Counsel.
