When Can a Contractor Refuse to Accept a Change Order

As a contractor, you have a set of duties and obligations that you must fulfill when working on a construction project. One of these obligations is fulfilling change orders, which are modifications made to the original construction contract. Change orders can arise due to various reasons such as design changes, unforeseen site conditions, or owner requests. However, there may be situations where a contractor may refuse to accept a change order. In this article, we will discuss those situations in detail.

Firstly, a contractor may refuse to accept a change order if it is not within the scope of the original contract. The original contract outlines the scope of work that the contractor is obligated to provide. If the change order is beyond that scope, then the contractor has the right to refuse it. For example, if the original contract was to construct a two-story building, and the owner requests an additional floor, the contractor may refuse to accept the change order if it exceeds the scope of the original contract.

Secondly, a contractor may refuse to accept a change order if it is not feasible or possible to execute. Some change orders may require a significant alteration in the design or construction process. If the contractor believes that executing the change order is not possible or would cause more harm than good, they can refuse it. For example, if the owner requests a change order that requires demolishing a load-bearing wall, the contractor may refuse it if it compromises the structural integrity of the building.

Thirdly, a contractor may refuse to accept a change order if it would significantly impact the project`s timeline or budget. Change orders can affect the project`s schedule, costs, and resources. If the contractor believes that the change order would substantially impact these factors, they may refuse to accept it. For example, if the owner requests a change order that would require additional material or equipment, the contractor may refuse it if it exceeds the project`s budget.

In conclusion, a contractor has the right to refuse to accept a change order if it is beyond the original contract`s scope, not feasible or possible to execute, or significantly impacts the project`s timeline or budget. However, it is essential to communicate with the owner and project team regarding the reasons for refusal and ensure that it does not breach the contract`s terms and obligations. As a contractor, it is crucial to balance your obligations with the client`s requests and ensure that the project progresses as planned.