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5 min read · Alabama Business Law · Birmingham & Hoover
A change order dispute in Alabama arises when the parties disagree about work that differs from the original construction contract, often over whether extra work was authorized, what it should cost, or how much time it adds. Most contracts require written, signed change orders before extra work is performed. When a contractor performs changed work without proper authorization, payment disputes follow, though doctrines like waiver and unjust enrichment can sometimes support recovery.
Few things are performed exactly as drawn. Change orders are the mechanism for handling the inevitable adjustments to scope, schedule, and price, and disputes erupt when that mechanism is not followed.
This guide explains what change order disputes involve in Alabama and how to protect your right to payment for changed work. It is educational and not legal advice on your project.
Construction contracts almost always include a procedure for changes, typically requiring a written, signed change order specifying the added scope, cost, and time before the work proceeds. Disputes arise when work is performed without following that procedure.
Common flashpoints include whether the work was truly 'extra' or already within the contract, whether it was authorized, and how to price work that was done under time pressure without a signed order.
Performing changed work on a verbal instruction or a handshake is risky. If the contract requires written change orders, the paying party may later dispute the obligation to pay for unauthorized extra work.
The safest practice is to insist on a signed change order before performing, and to confirm any field directives in writing. Documentation is the contractor's best protection.
Even without a signed change order, recovery is sometimes possible. Doctrines such as waiver (where the owner's conduct shows it did not insist on the written-change requirement) or unjust enrichment may support payment for work that benefited the owner.
These arguments are fact-specific and harder than enforcing a signed change order, which is why following the contract's change procedure remains the best path to getting paid.
A Hoover contractor performs significant extra work on a verbal 'go ahead' from the owner's site manager, with no signed change order, and the owner later refuses to pay for it.
If the contract requires written change orders, the owner may dispute paying for the unauthorized extra work. The contractor's best arguments, waiver or unjust enrichment, are harder to win than simply enforcing a signed change order would have been.
This scenario is a simplified, illustrative hypothetical to explain how the law generally works. It is not a real case and is not a prediction or guarantee of any particular outcome.
Our Birmingham and Hoover business litigators handle these matters every day. Learn how we can help with construction disputes, or call for a free, confidential consultation.
This guide is provided for general educational purposes only and does not constitute legal advice or create an attorney-client relationship. Alabama law and its application depend on the specific facts of your situation and can change over time. For advice about your matter, speak with a licensed Alabama attorney.