It’s Construction Dispute Season!

It’s Construction Dispute Season!

It seems like whenever we are several months into an economic recovery, constructions disputes become more common. Change orders are one of the most litigated issues in contract or construction disputes. Did they agree upon a change or not? Is this item an extra cost or is the change covered by the original price? Or was it off set by other deductions?

Most contracts are designed to prevent these disputes: a typical contract requires that all changes must be in writing. Changes include both additions to the project and items removed from the project.

So why are there disputes? I hear many reasons: We had a gentlemen’s agreement. I didn’t think there would be any extra charge. I thought the change was part of the original price. We were in a rush, a decision had to be made on the spot in the field. We agreed to do change orders at the end of the project.

Whatever the reason, not dealing with change orders properly can be costly. As an example, our Court of Appeals just issued an opinion allowing compensation for change orders that were not reduced to writing. They based their decision on sworn statements signed by the contractor and approved by the owner. The sworn statements included the changes, if one looked closely. The owner didn’t.

Following the written change order process will avoid many disputes. In these days of hyper-connectedness, if you do not have time or opportunity to reduce a change order to writing, at least exchange e-mails on your smart phones with authorized persons on both sides to confirm what will be changed, changes in the time for completion, and what it will cost!

Author(s)

Cunningham Dalman, PC publishes this web site and its component parts to inform users about our firm, our attorneys and general new developments in the law. The web site and blogs are not intended as legal advice on any matter. There are many factors that may affect your situation. You should not act or refrain from acting because of information found here without first seeking appropriate legal or other professional advice from someone who is familiar with your particular circumstances.

In the operation of this web site and our blogs, we do not intend to create an attorney-client relationship with you and no such relationship shall be created by your use of this web site. Such a relationship can only be established to the extent an attorney at Cunningham Dalman, PC expressly agrees to undertake the relationship. Please do not communicate to us any information you regard as confidential unless and until we have established a formal attorney-client relationship with you. Any information you send to us before we establish an attorney client relationship may not be privileged or confidential. Information you send to us over the Internet may not be secure.

 
Attorneys...
Our Practice Areas
Our Practice Areas

Recent Posts

Contact

Cunningham Dalman P.C.
PO Box 1767
321 Settlers Road
Holland, MI 49422-1767

Google Map

 

Scroll to Top

Tell Us How We Can Help You

Send us a quick message or call us at 616.392.1821!

Seminar Registration

Fill in the form below to reserve your spot today for each person attending. If you have any questions, please call the office at 616.392.1821.

Call Now Button