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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.
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.
CCDs are provisional instructions issued for immediate implementation, allowing work to proceed while final costs and details are determined. Change Orders, on the other hand, involve a formal process that includes evaluation, negotiation, and contractual modifications.
A change order is a written amendment to an existing contract after the effective date that alters the work, the contract sum, or the contract time. While contracts are intended to be the final word for projects, sometimes things need to change.
The four most common types of change orders in construction are: lump sum (when the change can be quantified in price); zero cost (no change in price); time and material (cost cannot be estimated); and unitary cost (a change in scope that can be defined by measurement units).
The main difference lies in who isemploying the person. If a worker is employed by a company directly, they are an independent contractor. If the worker is hired to perform a specific task for a general contractor, they are a subcontractor.
A change order form is used in construction projects to track any modifications to the original contract. Our construction change order form example is available in a variety of formats, including PDF and Word, and can be downloaded for free.
Some of the most common reasons for change orders include: Inaccurate specifications in the original designs or contract. Ambiguous or inaccurate drawings. Unforeseen conditions at the job site, such as obstructions that could not be planned for.