What Is A Change Order Directive?

The change order provision in a contract is one of the most important parts, allowing the parties to increase or decrease the scope of work. Every contract has its own unique terms as to what is required to have a change order completed correctly, who can sign, what will be included in the change order, and when it is paid. Another provision being added to the change order section of the contract is the change order directive.

How Does a Change Order Directive Impact Subcontractors?

A change order directive means that the subcontractor and the general contractor agree that the work to be performed is extra and outside the original scope of work. But they cannot agree on the price of the work, so the subcontractor is ordered to do the extra work and a resolution as to the price will come later. In most cases, the "later date" is after the work is completed and the parties mediate the issue. This causes obvious problems for the subcontractor, who has to do the work