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To change contract plans, specifications, or both. To describe the work and method of payment for work stipulated in the contract to be paid as extra work. To authorize an increase in extra work funds necessary to complete a previously authorized change. To make payment adjustments.
Change orders need to have a breakdown of the scope with ideally labor and materials broken out. In some cases, the client wants to see backup of the costs as well and even labor rates. Be prepared to provide the support documentation that will be needed to justify the change order.
Once the owner and contractor have agreed on scope, price, and schedule, a formal, written change order is prepared and signed by all parties. Then, the contractor proceeds to perform the changed work.
As an example of a change order, say a construction project expands to require plumbing that was not previously necessary. In that case, you may need to hire a subcontractor, but change order doesn't cover new subcontractors. Instead, the original contract may need to be renegotiated to permit subcontracting.
6 things every change order should include Project and contact information. The change order form should include: ... Dates of the change. The change order form should include the date that you complete the change order. ... Details of the work. ... Updated schedule. ... Cost of the change. ... Updated contract value.