DregerLaw Blog

A bodyguard's perspective

Change Orders: Part Two

Let’s take a closer look at changes that come with a cost, also known as “extras.” These extras are any modifications in the project that increase the contractor’s bottom line. For this reason, he’s entitled to extra payment.

Change Orders: Part One

The change orders form is also essential when it comes to detailing any alterations in the job’s scope of work. Like the waiver of lien and contractor’s affidavit, you must have a change order for each adjustment.

The Waiver of Lien

Under Illinois law, a contractor who adds value to a project by providing labor and/or materials has a statutory right to place a lien on the project property and to foreclose on that lien (forcing the sale of the property) to receive payment for the contractor’s services. The Waiver of Lien serves as a legal release of this statutory mechanic lien right’s when the sub-contractor receives his payout.

Construction Escrow

Most construction project finances are handled by a third party, typically a title company or a bank, which acts as fiduciary, receiving and approving all contractor payout requests. Think of the Escrow Agent as the umpire between the contractor team and the owner team.

Construction Management Paperwork

“The Construction Phase.” This stage involves the actual “brick and mortar” work and the processing, approval and payment of the written payout requests of the contractor, sub-contractors and material suppliers (i.e. materialmen).

Components of a Construction Contract

…the significance of a construction contract. In basic terms, this agreement addresses every aspect of a particular construction project while representing each party fairly. Before any work begins, it is critical for a contract to be in place.