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Classic examples of change orders include the owner's desire to move the location of a wall to accommodate some other design element, adding a window where there was none in the original plans, or changing the finish of the floors from tile to terrazzo.
Change orders typically consist of three parts: the project information, the changes to the contract, and the change in cost and time for performance. Project information includes the project name and the owner's and contractor's information.
Here are the steps of an effective change order process: Start the conversation. Regardless of who initiates a potential change, the first step is for the project owner and contractor to discuss what the change is, why it's being requested and how it will impact the project's cost and timeline.
Change Order Process Review the Contract and Identify the Reason for the Change Order. ... Create a Change Order Request. ... Reach an Agreement About the Change Order Proposal. ... Get Approval On the Change Order and Adjust the Contract. ... Use a Change Order Log to Keep Track of Change Orders.
How to deal with change orders Write everything down. At a minimum, everything should be written down. ... Revise the scope of work and include updated pricing. A change order needs to answer the same questions as an original contract. ... Keep track of your costs. ... Communicate changes clearly and plan ahead.