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Change Order Disputes

Is a verbal change order valid?

It depends on the contract. Most commercial contracts require written changes. Without a written clause, verbal agreements are valid but hard to prove.

Can the client force me to do extra work?

Yes, if the contract includes a "Right to Vary" clause. However, the contractor is entitled to fair compensation and an extension of time.

How is the price of a change calculated?

Typically using Unit Rates from the original contract. If no applicable rate exists, a new price is agreed upon based on market rates or cost-plus.

What if the client refuses to sign the Change Order?

Send a formal notice stating the work is a variation requiring payment. Avoid starting the extra work without written confirmation if possible.

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Change Order Disputes: Managing Changes in Construction

Construction is a living process, and it is rare for a project to be completed exactly according to the initial plan from start to finish. A "Change Order" (or Variation Order) is an official document by which parties agree to modify the terms of the original contract (scope of work, timeline, or price). However, in practice, changes often become a subject of dispute: the client requests additional work but refuses to pay extra, or the contractor performs work based on verbal instructions and then fails to receive payment. Change Order Disputes are one of the most frequent causes of project budget overruns and schedule delays.

Properly managed changes are key to project success, while uncontrolled changes are a source of chaos. Disputes may concern whether a specific request constitutes a "Variation" or if it was already included in the original price. Also, disputes over the valuation method of the change are common. Legal.ge offers access to construction law experts who will help you bring the change process within a legal framework and resolve disputes effectively.

What Does Change Order Disputes Service Cover?

Specialists on Legal.ge offer:

  • Identifying Changes: Analyzing whether the client's new request exceeds the original contractual obligations (avoiding Scope Creep).
  • Document Preparation: Drafting Change Order projects, clearly outlining the description of new work, price, and impact on deadlines.
  • Valuation: Assisting in determining the fair market price for additional works.
  • Legalizing Verbal Instructions: Developing mechanisms to turn verbal instructions given on the construction site into legally binding documents.
  • Extension of Time (EOT) Claims: If the change causes project delay, preparing a request for adding relevant time.
  • Dispute Resolution: Negotiation or litigation to recover payment for unpaid changes.

Common Scenarios and Real-World Examples

Disputes related to changes often arise in the following situations:

  • Design Change: In the middle of construction, the client decides to change the room layout. This requires demolishing already built walls and building new ones. The contractor claims costs for both demolition and construction.
  • Material Substitution: The project specified standard tiles, but the client demanded marble. The price difference must be formalized via a Change Order.
  • Necessary Changes: During construction, it was discovered that the design contains an error and cannot be implemented without changes. Who pays for this — the client (as the author of the design) or the contractor?
  • Verbal Agreement: While on site, the client told workers: "I don't want this wall here, move it there." The contractor complied, but when payment time came, the client refused because there was no written confirmation.

Georgian Legal Framework

Change management is regulated by the Civil Code norms on works contracts and the specific agreement.

The law establishes that if the estimate is approximate, its significant excess (including due to changes) requires client consent. If the client does not agree to the price increase, they can terminate the contract but are obliged to pay for work already performed. Most importantly, the contract condition matters: if the contract explicitly states that "any change must be in writing," then recovering payment for work done based on verbal agreement is very difficult in court.

In international practice (FIDIC), changes (Variations) are detailed in Clause 13, which establishes the Engineer's right to issue change instructions and the contractor's obligation to execute them in exchange for price adjustment.

Step-by-Step Service Process

Working with a lawyer on Legal.ge involves:

  1. Fact Gathering: Analyzing correspondence, construction logs, and instructions.
  2. Qualification: Is this a "Change" or a contractor's obligation?
  3. Assessment: How much does this change cost and how much time does it require?
  4. Formalization: Preparing the official Change Order document.
  5. Enforcement: Demanding payment.

Why Choose Legal.ge?

Improper change management is the number one cause of losses for contractors. Legal.ge gives you tools to ensure your labor is valued and paid for. Our lawyers will help you turn "verbal requests" into "written obligations." Manage changes professionally.

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