article thumbnail

#132:  Written Change Order Requirements

NH Construction Law

Many construction contracts and subcontracts, both residential and commercial, provide that any addition or deletion from the scope of work described in the contract must be documented by a written change order. Does that failure doom additional compensation (or credit) for an agreed upon change to the work? Holden, Inc.

article thumbnail

How to Write Tight Subcontracts

Construction Business Owner

Starting projects with excellent subcontractors and detailed subcontracts will help you make more money, finish faster and reduce field issues. When this happens, your team will encounter disputes, change order requests, late schedules and holes in the budget.

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Make Changes & Still Make Money

Construction Business Owner

How to Make Changes & Still Make Money. It’s nearly impossible to make any money when contracts allow just 10% and your subcontract only allows for 15% total overhead and profit markup on change orders, or time and material costs plus work. Alex Headley. Fri, 03/26/2021 - 11:30.

Overhead 328
article thumbnail

#65:  Unjust Enrichment Recovery for Verbal Change Orders

NH Construction Law

Given the importance of nailing down any changes to an original scope of work along with their price and schedule effects, many construction contracts require change orders to be in writing, and even define change orders as written instruments. Section 7.2.1 Should he suspend work, and risk being in breach?

article thumbnail

Can Change Orders Jeopardize Bond Protection?

Construction Dive

The bonds incorporate the terms of the construction contract or subcontract by reference. And those contracts authorize alteration through change orders. But what if the surety discovers that the change order process has radically altered the contract it originally agreed to cover? ” Read more.

article thumbnail

Controlling Construction Costs, Rocket Science, and Time Travel

Job Order Contracting

Using these granular elements and sharing the associated descriptions, l abor, material, and equipement details in a standardized format (CSI MasterFormat) with all project participants within a robust collaborative process is the path to significant cost savings and the mitigation of change orders, disputes, and waste.

Travel 178
article thumbnail

The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement. Court of Appeals for the 4th Circuit concluded that a “pay if paid” clause in a subcontract was not ambiguous and, therefore, enforceable against the subcontractor.