What happens when changes occur during the course of the project?
When changes occur during the course of a construction project in New Jersey, both the contractor and the owner must make sure to update the construction contract in order to reflect the change. This includes any additional materials, labor, or services that are needed as a result of the change. It is important for the contractor and owner to keep good records of any changes and document the added costs of the change. If there are disagreements about the additional costs stemming from the change, the parties can get an independent expert to analyze the change and provide an opinion on the costs. If the parties are still in disagreement, then the dispute may need to be resolved through alternative dispute resolution such as mediation or arbitration. When changes occur, the contractor must be sure to avoid any delays in project completion due to the change. In New Jersey, the contractor is responsible for any delays caused by the change unless the contractor was unable to proceed due to the lack of information from the owner or the owner intentionally did something to interfere with the contractor’s progress. Both parties should document any delays that occur due to the change in order to avoid future disputes.
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