Change tone in the Construction Contract

Aug 6th, 2022
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How to change tone in the Construction Contract

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welcome to the online information seminar on the changes to the construction contracts act 2004 from the 15th of December 2016 important changes to the construction contracts act or the CCA commence operation these are the biggest changes since the CCA first commenced operation in 2005 the broad scope at the construction contracts that the CCA covers means its important that all participants in the building and construction industry are aware of the changes this includes contractors subcontractors suppliers consultants and any individuals or organizations who enter into contracts for construction work including contracts for design-build maintenance and services such as plumbing electrical fabrication and earthworks this online seminar covers four key areas firstly what is the CCA and what it does secondly a brief background on the changes and the policy drivers behind them this context is important in understanding why the Act is changing and the future changes that may be made the s

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In project management, change orders are also called variations or variation orders. Any modification or change to works agreed in the contract is treated as a variation.
A change request is a proposal or request for a change order, either initiated by the owner or the contractor, or resulting from unforeseen conditions or errors. A change order is legally binding and requires approval from both parties, while a change request is not yet an agreement and may be rejected or negotiated.
A fixed sum or lump sum change order is used when changes to the project scope can be accurately quantified, thereby resulting in an overall cost increase for the project. Time and materials (TM) change orders are generally needed when the full scope of the proposed changes are unknown.
What are the most common types of change orders? Cost Change Orders: Most change events have associated costs, but not always. Scope Change Orders: Any change in the scope or specifications of the project not part of the original contract.
Theres also a way an architect can change the work on a project without the consent of a contractor: the Architects Supplemental Instruction, or ASI. However, an ASI isnt allowed if the change affects the schedule or cost, so it does not have the same kind of effect as a change directive.
One of the harmful consequences of project change is rework or revision of work [2], [6]. The cost of rework in construction projects can be as high as 1015% of the contract value. In addition to rework, other negative effects of change include extra work, time loss, design revisions, increase costs, etc.
What is a change order? A change order is a document used to alter the original agreement on a construction project. It details the changes in the scope of work, cost, and schedule that are required. In many instances, the construction contract dictates the change order process.
As the project environment changes, affecting costs, time for completion, and performance requirements, the project plans must be adjusted in order to reflect the new project requirements. Hence, a change to the contract is required. In construction, a contract change is called a variation.

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