Construction Change Orders in Michigan: How Small Disagreements Can Become Expensive Disputes

Construction projects frequently require modifications after work has begun. Changes in project scope, materials, site conditions, design specifications, or scheduling requirements may require adjustments to the original construction agreement.

While change orders are a common component of construction projects, improperly documented or disputed changes can lead to significant financial disagreements between property owners, contractors, subcontractors, and other project participants.

At Sadecki & Associates, we represent contractors, subcontractors, developers, suppliers, and property owners throughout Michigan in construction contract matters, payment disputes, and construction litigation. Proper contract management and documentation are essential to reducing the risk of costly disputes.

What Is a Construction Change Order?

A construction change order is a written modification to an existing construction contract that alters the original scope of work, contract price, project schedule, or other contractual obligations.

Change orders may address:

• Additional work outside the original scope of the agreement

• Modifications to project specifications

• Changes in materials or construction methods

• Adjustments to completion deadlines

• Unforeseen site conditions

• Owner-requested revisions

A properly executed change order provides written documentation of the parties' agreement regarding the requested modification and the resulting impact on the project.

Without proper documentation, disputes may arise regarding whether additional work was authorized, whether payment is owed, and which party bears responsibility for increased costs or delays.

Common Causes of Construction Change Order Disputes

Construction disputes involving change orders often arise when the parties disagree about the scope, approval, or financial impact of additional work.

Common issues include:

• Additional work performed without written authorization

• Disagreements regarding contract interpretation

• Failure to follow contractual change order procedures

• Disputes regarding additional compensation

• Delays caused by project modifications

• Conflicting communications between project participants

• Disagreements regarding responsibility for increased costs

These disputes may affect project completion, payment obligations, and contractual relationships between parties.

The Importance of Construction Contract Provisions

A well-drafted construction contract should establish clear procedures for handling project changes.

Important contract provisions may address:

• Requirements for submitting change requests

• Approval procedures

• Authority to authorize additional work

• Documentation requirements

• Pricing methods for additional work

• Schedule adjustments

• Payment procedures

Clear contractual provisions provide a framework for resolving disagreements and help establish the parties' rights and obligations if a dispute develops.

Verbal Agreements and Unapproved Work Can Create Legal Risk

One of the most common sources of construction disputes is performing additional work without obtaining proper written approval.

A contractor or subcontractor may believe additional work was authorized based on conversations, emails, or project discussions. However, the owner or another party may later dispute the scope of the authorization or the amount owed.

Without clear documentation, disputes may involve questions such as:

• Whether the work was outside the original contract scope

• Whether the additional work was approved

• Whether the pricing was agreed upon

• Whether the project schedule was properly extended

• Whether payment obligations were triggered

Maintaining written records throughout the construction process can be critical when enforcing contractual rights.

Construction Payment Disputes Related to Change Orders

Change order disagreements frequently develop into payment disputes.

A contractor or subcontractor may seek additional compensation for work performed, while an owner may dispute the amount requested or argue that the work was included in the original agreement.

These disputes may involve:

• Breach of contract claims

• Unpaid construction invoices

• Construction lien claims

• Claims involving improper withholding of payment

• Disputes regarding project completion

When payment disputes cannot be resolved, construction litigation may become necessary to protect a party's contractual and financial interests.

Protecting Your Interests During a Construction Project

Both contractors and property owners benefit from maintaining detailed documentation throughout the project.

Important records may include:

• Original construction agreements

• Change order requests

• Written approvals

• Project correspondence

• Invoices and payment records

• Project schedules

• Construction documentation

Proper documentation can help establish the parties' obligations and provide important evidence if litigation becomes necessary.

When Should You Consult a Construction Attorney?

Legal guidance may be beneficial when a construction dispute involves significant financial exposure, disputed contractual obligations, or potential litigation.

A construction attorney may assist with:

• Reviewing construction agreements

• Evaluating contract rights and obligations

• Negotiating payment disputes

• Addressing breach of contract claims

• Resolving construction lien issues

• Representing parties in construction litigation

Early legal involvement may help parties resolve disputes efficiently and avoid unnecessary escalation.

Frequently Asked Questions About Construction Change Orders in Michigan

1. Are construction change orders required to be in writing in Michigan?

The answer depends on the terms of the construction contract and the circumstances involved. However, written change orders are strongly recommended because they establish clear documentation of the parties' agreement regarding additional work, costs, and project modifications.

2. Who is responsible for paying for additional construction work?

Responsibility depends on the construction agreement, the authorization of the work, and the circumstances surrounding the change. Disputes often arise when parties disagree about whether additional work was approved or properly documented.

3. Can a contractor recover payment for work performed without a signed change order?

Potentially, depending on the contract terms and facts of the dispute. Contractors should carefully review contractual requirements before performing additional work.

4. When should a construction dispute attorney be contacted?

Legal counsel should be considered when disputes involve unpaid work, significant contract disagreements, construction liens, project delays, or potential litigation.

Construction Contract and Litigation Representation in Michigan

Construction disputes often develop from unclear agreements, undocumented changes, and disagreements regarding payment obligations. Addressing these issues early can help protect business interests and reduce the risk of prolonged litigation.

At Sadecki & Associates, we represent contractors, subcontractors, developers, suppliers, and property owners throughout Michigan in construction law matters, including contract disputes, payment conflicts, and construction litigation.

If you are involved in a construction dispute or need assistance reviewing a construction agreement, contact Sadecki & Associates to discuss your legal options.