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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.
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.
What Is a Change Order in Construction? In construction, a change order refers to the documentation of an agreement to add or subtract work, alter the design, revise the schedule, modify the price, or deviate from the original project in some other way.
In construction, a change order refers to the documentation of an agreement to add or subtract work, alter the design, revise the schedule, modify the price, or deviate from the original project in some other way.
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.
How to successfully complete and submit your change orderAsk the client to submit a change order.Check the change order against the contract.Review whether you can meet the client's request.Double-check price and schedule changes.Approve and modify the scope of work.
Key Parts to Include in a Change OrderContract number.Name and contact details of contractor or subcontractor.Name and address of project.Important dates such as deadlines, dates when change order is proposed and when it's approved.Information about what change is being made.More items...
A standard change order should include the following:Job name, address and phone number.Owner's name.A complete description of new work to be performed.Total price for materials and labor to complete the change.Revised date of completion due to the change order.Signatures of the company representative.More items...?
What Do Change Orders Typically Include?A description of the requested change compared to the original contract or bid.Itemized documentation of any subcontractor costs.A summary by the contractor of the total costs of the proposed change.More items...?
At a minimum, all change order forms should identify the following:The name and address of the project.The owner's name.The name and phone number of the person requesting the change.A complete description of the planned work.The price of the change (including a breakdown of the costs as well as the total)More items...?