DFS + anyone else in construction

[NDallasRuss]

I have a question about contract modifications that I was hoping you all could give me your input on.

When you have a modification that needs to be made to a construction contract, do your clients use a "change order" for everything? Or do they also have an instrument called a "field order" that they can use?

I have a client that manages construction projects. For planned changes with more time to spare, they use change orders, which go through their normal review/approval process. For other unexpected changes that could cause a delay or additional expense if they're not addressed right away, they use field orders. For example, if the contractor is preparing a site and hits a boulder, a field order would get them to remove the boulder to avoid holding up the project. These field orders get reviewed within the department, but aren't subject to other reviews that change orders would get.

Do you all have experience with these types of contract modifications? If so, what would you estimate (ballpark) the percentage of changes processed through change orders, vs as field orders?

I'm looking around online for other examples of organizations that use them, but they don't seem to be as common.

Thanks in advance!

 

[littleitch1]

It would have to be a preset clause in the contract I would think to clarify the use of a “ field order”, for such unknown conditions up to a pre set price cap!

But, a lot of unforeseen situations can affect more than one trade

I use change orders for any such situations simple or complex


Hope that helps


Let me add I do remodeling or additions, some commercial buildouts so I am in direct contact with the homeowner or business owner quickly

Biggerprojects im sure are completely structured differently

 

[NDallasRuss]

It would have to be a preset clause in the contract I would think to clarify the use of a “ field order”, for such unknown conditions up to a pre set price cap!

But, a lot of unforeseen situations can affect more than one trade

I use change orders for any such situations simple or complex


Hope that helps


Let me add I do remodeling or additions, some commercial buildouts so I am in direct contact with the homeowner or business owner quickly

Biggerprojects im sure are completely structured differently

Thank you itch!

 

[DFSNOLE]

I've only used field orders when it didn't affect the monetary value of the contract. It was more of a "we found that this condition changed so we're going to do this instead of that at no price increase".

For me, anything that alters the contract value, either increase or decrease, requires an executed change order.

 

[EconSean]

Does the nature of the “change” matter?

We do addendums, but it seems like those are usually if there is an addition to the main body of work (that is, we’re doing what’s in the contract, but now we are going to do more).

We also do contract mods and change orders, but I’ll be damned if I know what’s called for when.

Glad we have a contracts group to handle such details.

 

[NDallasRuss]

I've only used field orders when it didn't affect the monetary value of the contract. It was more of a "we found that this condition changed so we're going to do this instead of that at no price increase".

For me, anything that alters the contract value, either increase or decrease, requires an executed change order.

Thanks DFS! That's what I'm finding for most of the localities I've looked at. I appreciate your input. This particular client uses them for pretty much anything they believe will save time (aka prevent delay), as long as the increased cost falls within the pre-approved contingency amount for the project. The thing is, they can justify pretty much anything as having prevented some kind of delay. This helps!

 

[NDallasRuss]

Does the nature of the “change” matter?

We do addendums, but it seems like those are usually if there is an addition to the main body of work (that is, we’re doing what’s in the contract, but now we are going to do more).

We also do contract mods and change orders, but I’ll be damned if I know what’s called for when.

Glad we have a contracts group to handle such details.

I guess it matters in that they're not changing the contract, as much as they're adding to it.