This change order becomes part of the original contract.
This change order becomes part of the original contract.
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A change order, or variation order, is an agreement between a contractor or subcontractor and a consumer that makes modifications to an existing construction contract. These changes can consist of addition, omission, or substitution for the work, schedule, price, or other aspect of the contract.
A change order is a legally binding document used to make changes to the contract.
A change order may be initiated by a project owner or contractor anytime during the construction process. The project's original contract will typically stipulate the use of a particular change order form; if not, one may be created in a document, spreadsheet or even be handwritten.
What Is a Change Order? A change order is a document that addresses any change in the project scope, detailing what needs to happen, how much it'll cost and when it can be expected to reach completion. The change order is a means to modify existing contracts and, in effect, adjust the price and timeline of the project.
Kurt Lewin developed a change model involving three steps: unfreezing, changing and refreezing.
The contractor prepares a "change order proposal" quoting a price for the extra work. 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.
In fact, it's not a contract amendment. As Construction Law Today explains, a Change Order is a bilateral agreement between parties to the contractan owner and prime contractor, prime contractor and subcontractor, two or more subcontractorsto change the contract.
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.Workers or materials that do not arrive or come late to the site.More items...?
Generally, there are four types of change orders. These are Time and Material, Lump Sum, Zero Cost, and Unitary Cost change orders. A lump sum change order is used when the defined change in the work scope is quantifiable, and a definite price developed.
By signing a change order, the contractor agrees to the cost and time, if applicable, of the contract modification; however, the University has the right to order changes in the work by issuing a field order (see 13.1).