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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.
Start With the Contract A change order is simply an addendum or amendment to the original construction contract and scope of work and can be initiated by the owner or the contractor.
A supplemental agreement is a bilateral change order to a contract where the parties agree that specified additional work will be accomplished in return for a specified consideration, normally additional money and/or time.
A construction change directive (CCD) is effectively a command to a contractor to change their work on the project. When a contractor is given a change directive, it is essentially an order: The contractor must follow the changes without any say in the matter. Change directives are also known as force account work.
The construction change order represents an amendment to the original contract, which defines the project's scope of work and references plans, drawings, and specifications. Change orders in construction are very common, and occur in almost every commercial and public project.
Custom contracts often explicitly state there can be no oral modification of the contract and only signed, written change orders will be binding on the parties. The process for agreeing to a change order begins when one of the parties to a contract requests a change to that agreement.
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.
Supplemental Work Order means any and all written amendments, modifications or changes to a Work Order deemed necessary by DCAS, in its sole discretion, in the best interests of the City. Unless required by Law, Supplemental Work Orders need not be registered with the Comptroller and shall not be deemed Extra Work.
6 things every change order should includeProject and contact information. The change order form should include:Dates of the change.Details of the work.Updated schedule.Cost of the change.Updated contract value.Match the payment application.Get it in writing and save it.
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.