Polytechnic University of Puerto Rico

Optional Activity 5.1

Delivery Date: 10 February 2024

Colon Nieves, Edwin

#91385

MEM 6820 – BUSINESS & CONSTRUCTION LAW

WI – 23

PROF. Johnny Elias Rivera

Change orders are a common occurrence in the construction industry, playing a crucial role in

managing project variations, unforeseen circumstances, and client requests. Essentially, a change

order is a formal document that outlines alterations to the original scope of work, including

modifications to the project's design, specifications, or materials.

Reasons for Change Orders:

1. Design Modifications: Clients may request changes to the initial design due to evolving needs,

preferences, or regulatory requirements.

2. Unforeseen Conditions: During construction, unforeseen site conditions such as hidden

structural issues or environmental factors may necessitate changes to the original plans.

3. Scope Adjustments: Changes in project scope may occur due to budget constraints, scheduling

conflicts, or shifting priorities.

4. Client Requests: Clients may request additional features, upgrades, or adjustments to meet

their specific preferences or requirements.

Key Components of Change Orders:

1. Description of Change: Clearly outline the proposed modification, including detailed

specifications, drawings, and any relevant documents.

2. Cost Implications: Specify the cost impact of the change, including adjustments to the project

budget, timeline, and resources.

3. Approval Process: Define the approval process, including the parties responsible for approving

the change order and any required signatures.

4. Documentation: Ensure thorough documentation of all change orders, including

communication logs, correspondence, and revised contracts.

Impact of Change Orders:

1. Schedule Delays: Changes to the original scope can disrupt the project timeline, leading to

delays in completion.

2. Cost Overruns: Additional work or materials required for the change order can result in

increased project costs.

3. Disputes and Claims: Miscommunication or disagreements regarding change orders can lead

to disputes between stakeholders, potentially resulting in legal claims.

4. Coordination Challenges: Managing multiple change orders simultaneously can pose logistical

challenges, requiring effective communication and coordination among project stakeholders.

Best Practices for Managing Change Orders:

1. Proactive Communication: Establish clear channels of communication to ensure all

stakeholders are informed of potential changes and their implications.

2. Document Management: Maintain thorough documentation of all change orders, including

written approvals, revised drawings, and cost estimates.

3. Negotiation and Resolution: Foster open dialogue and collaboration among stakeholders to

negotiate fair terms and resolve disputes promptly.

4. Regular Review: Conduct regular reviews of the project scope, budget, and schedule to

identify potential changes early and mitigate their impact.

In conclusion, change orders are an integral part of the construction process, facilitating

flexibility and adaptation to evolving project requirements. By understanding the reasons for

change orders, effectively managing their impact, and implementing best practices for their

management, construction professionals can navigate project variations successfully and ensure

project success.

References:

 https://virtualcampus.pupr.edu/ultra/courses/_45608_1/cl/outline