What are the requirements and restrictions on change orders in construction contracts?
Change orders are changes to the scope of work, timeline, and other components of a construction agreement that can lead to a deviation from the original contract. In Washington, construction contracts require that change orders be agreed upon by both parties and stated in writing. This includes any changes made during or after the construction project has begun and could include changes due to different equipment, materials, labor, or schedule changes. The parties to a construction contract in Washington must also provide a detailed description of the requested change to the other party and must provide notice in writing of the changes and their corresponding financial impacts. This allows the parties to review and negotiate the changes before they are agreed to and entered into the contract. If the contractor or owner requests changes in the scope of work, they must also provide the other party with a reasonable time frame to complete the additional work. They must also provide reasonable compensation for any additional work that is required. In Washington, contractors and owners may also be able to recover reasonable costs associated with the change orders, including any materials, labor, supplies, and other costs that are related to the changes. They may also be able to include provisions in their contract that require the other party to pay for any additional costs incurred as a result of their requested change. Despite these requirements and restrictions, change orders can be a beneficial addition to a construction contract as they enable parties to modify their contract to better reflect any changes that are necessary or necessary in the future. Change orders can also be used to reduce the risk of construction disputes.
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