What are the requirements and restrictions on change orders in construction contracts?

In Texas, a change order is a written document, signed by both the contractor and owner, that amends a construction contract. Change orders can cover changes in the scope of the project, payment terms, or any other changes in order to complete the project. Typically, changes that occur during the construction process, such as those requested by the owner, require a change order in order for them to be legally binding. Change orders must be in writing in order to be enforceable. This document must include the terms of the change and the authorization of the parties involved. The change order must also clearly specify how the parties will address costs including labor, materials, and director costs. In addition, change orders must be reviewed and approved by all parties that are involved in the execution of the project before they can take effect. They must also be made in a timely manner so that the contractor is not disadvantaged. If the change order is not submitted in a timely manner, the contractor may be entitled to additional compensation. Finally, change orders should be specific and should not contain any ambiguous language. If either party feels that the language is unclear or open to interpretation, they should address their concerns in writing and include it in the change order. This helps to ensure that all parties understand and agree to the terms of the change order.

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What are the requirements and restrictions on change orders in construction contracts?

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