Extra work can lead to disputes when approval is unclear, but do change orders need to be in writing? The answer depends on the contract and applicable law.
In this guide, Furukawa Castles Karic LLP explains how contract terms and project records may shape your options. If you have more specific questions, our construction litigation attorney in San Francisco can review the project records relevant to your dispute.
What Does the Contract Say About Approving Changes?
Parties should understand whether change orders must be in writing before the work begins. The agreement sets the ground rules. Construction contracts usually explain who can request and approve a change.
Many construction contracts require written change orders so that both sides have a clear record of the agreed price and timing. Although California home improvement work generally requires written change-order authorization, other remedies may sometimes permit recovery for unwritten changes, depending on the contract and project record. You can learn more about contracts, but an attorney will usually want to review your agreement before you rely on a handshake deal.
What Information Should a Change Order Document?
A strong change order leaves little room for guessing and should cover these basics:
- Work description: Explain the scope of the work changes, including added or removed tasks.
- Price adjustment: Explain how the change affects the contract price and how the adjustment was calculated.
- Schedule impact: Say whether the change moves a milestone or the completion date.
- Approval details: Identify the project and include the signatures required.
Together, the change order and supporting project records can clarify what changed and how it affected the work. Photographs may also document site conditions that influenced later decisions.
What Happens When There Is No Signed Change Order?
Change order disputes often start when one side authorizes extra work and later questions the cost. When that happens, the contract and applicable law determine whether the project records support payment for the work.
Oral directions and project emails can help show what was agreed. Past approval practices may also be relevant. A pattern of paying for unwritten changes may support your position.
Your ability to recover payment for extra work depends on the contract and the circumstances. Notice requirements and proof of authorization can also affect a contractor’s right to payment.
Before taking action that could affect payment or project performance, you might consider seeking legal advice. Acting too quickly can complicate the original dispute. Public projects may also follow stricter procedures, and an attorney can help review the rules for your job.
How Can You Reduce the Risk on Your Next Project?
The simplest habit is to pause before starting extra work. If an owner or supervisor gives a direction on the spot, send a short email that same day confirming what was discussed. That email documents the request, but may not satisfy contractual approval requirements by itself.
Keep the message with your other project records. Clear file names also make related documents easier to locate. If needed, the email and related project records can show who gave the direction and how the project team later responded.
Before work starts, identify everyone with authority to approve changes and confirm any notice deadlines in the contract. If a change becomes necessary, record when the request was made and whether it affects the schedule. Keep cost estimates and time records tied to that specific request.
The pricing method is also important because fixed-price and hourly work require different supporting records. Tracking costs from day one can make later pricing conversations easier. This approach gives the project team a clearer basis for reviewing the change and may reduce confusion when the final payment application is prepared.
What Is a Change Directive?
A change directive is different from a change order. Under common contract forms, an owner may issue one without the contractor’s signature so work can continue before the parties settle any price or time adjustment. Carefully review how your contract handles these directives before responding.
Protect Your Project With Furukawa Castles Karic LLP
Our Design Professionals Defense and Counseling Group, led by founding partner Bruce N. Furukawa, primarily represents architects and engineers. We can represent clients in disputes involving breaches of construction contracts, including those arising from informal approvals.
Do change orders need to be in writing for your specific project in San Francisco? If you need clarity or guidance, you can call Furukawa Castles Karic LLP at (415) 510-2823 to schedule a consultation.