Legal/Contractual Topic: Change Order Pricing and Disputes
Procedures and disputes arising from design changes and scope modifications.
Legal and contractual matters are critical to construction project success:
1. Risk management: Understanding contractual allocation of risk among project participants 2. Payment protection: Using liens, bonds, and notices to ensure payment for work performed 3. Schedule management: Establishing clear procedures for schedule changes and delay claims 4. Insurance requirements: Maintaining adequate coverage for project-specific risks 5. Dispute resolution: Understanding available remedies and resolution procedures 6. Documentation: Maintaining records supporting payment, schedule, and change claims 7. Professional counsel: Consulting attorneys for complex contractual and legal issues 8. Early resolution: Addressing disputes promptly to minimize project impact
Proactive legal and contractual management reduces disputes, protects cash flow, and improves project outcomes. Clear communication and documentation prevent many construction disputes.