Change Order and Change Order Disputes By Mick Martin MRM Enterprises.
-
Upload
nancy-hensley -
Category
Documents
-
view
227 -
download
1
Transcript of Change Order and Change Order Disputes By Mick Martin MRM Enterprises.
![Page 1: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/1.jpg)
Change Order andChange Order Disputes
By Mick Martin
MRM Enterprises
![Page 2: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/2.jpg)
Definition of Change Order:
• A change order is essentially an agreement to modify the parties contract. In this respect a contract modification is binding so long as both parties consent to the change.
![Page 3: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/3.jpg)
What is a Change Order?
Some common factors leading to change orders:
• Delays
• Specific Design Alterations
• Lack of Coordination
• Building code compliance
![Page 4: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/4.jpg)
What a Change Order is NOT:
• Interpretation of General Concepts of the Contract
• Device for Contractor or Client to get “Something for Nothing”
• A way to get out of a screw-up
• An after thought of specific work performed
![Page 5: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/5.jpg)
Get your Change Order in Writing
• Verbal agreements are not binding on any party
• Use specific language rather than general terms
• Include signatures and dates of all parties
• Copies to all parties
![Page 6: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/6.jpg)
Performance
vs.
Non-Performance
![Page 7: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/7.jpg)
Getting the Change Order Right
• Opportunity to do a better job and make more money
• Go above and beyond
• Be fair
• Communication is key
![Page 8: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/8.jpg)
Getting the Change Order Done
• Expedite the work in a timely fashion according to contract / change order
• Stick to the contract / change order
• Make sure all workers are instructed as to the specifics of the change order
• Get Paid
![Page 9: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/9.jpg)
Addition
or
Subtraction
![Page 10: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/10.jpg)
Add-ons (Additions)
• Any addition to the original contract, addendum or amendment
• Changing light bulbs to adding an east wing
• Common sense is not always so common
![Page 11: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/11.jpg)
Knock-offs (Subtractions)
• Any deletion to the original contract, addendum or amendment
• Change in material, money or time
• Always under promise and over deliver
![Page 12: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/12.jpg)
To Claim
Or
Not To Claim
![Page 13: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/13.jpg)
What is a Claim?
• Request for adjustment of contract terms
• Request for payment of money
• Request for extensions of time
![Page 14: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/14.jpg)
Contract Dispute Process
• Resolution
• Mediation
• Arbitration
• Litigation
![Page 15: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/15.jpg)
Resolution
• Resolve the claim without a 3rd party
• Contractor and client come to an agreement
• Work is performed – contractor is paid
• Client is satisfied
![Page 16: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/16.jpg)
Mediation
• Third party assistance in attempt at resolution
• Non-binding
• Mediator unbiased
![Page 17: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/17.jpg)
Arbitration
• Provisions enforceable by statute
• Inclusion of arbitration guidelines in construction contract
![Page 18: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/18.jpg)
Litigation
• Involvement of the judicial system
• Designed to produce accurate and fair outcome
• Method can be costly and time consuming
![Page 19: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/19.jpg)
Obstacles are those frightful things you see when you take your eyes off your goal”
~Henry Ford Inventor and Founder of Ford Motor Company
![Page 20: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/20.jpg)
Get It In Writing!
![Page 21: Change Order and Change Order Disputes By Mick Martin MRM Enterprises.](https://reader036.fdocuments.in/reader036/viewer/2022062408/56649eb55503460f94bbdcb7/html5/thumbnails/21.jpg)
Questions??
Thank you!