This change order becomes part of the original contract.
This change order becomes part of the original contract.
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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.
If your contract is silent as to whether written change orders are required as a condition of getting paid for your work, then a written change order isn't necessary, although it's still good practice to use written change orders to help avoid disagreements over scope, pricing and project completion.
A Change Order represents the mutual consensus between the parties on a change to the work, the price, the schedule, or some other term of the contract. And, because it represents a mutual consensus, a Change Order is usually the best, and least controversial, way to make changes.
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.
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.
5 Best Practices to Ensure Change Orders are not Bringing Your Company DownCheck Your Contract. Check it Twice:Clearly Communicate Cost:Understand the Full Cost of Changes:Make Sure Change Orders are in Writing:Make the Change Order Process Easier:
5 Best Practices to Ensure Change Orders are not Bringing Your Company DownCheck Your Contract. Check it Twice:Clearly Communicate Cost:Understand the Full Cost of Changes:Make Sure Change Orders are in Writing:Make the Change Order Process Easier:
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...?
A change order is a legally binding document used to make changes to the contract.
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).