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.
Change orders are original contract amendments that come up often, with an estimated 35% of projects requiring at least one. A change order represents a mutual agreement to change the work, schedule, price, or other term of the contract.
Do request a change order immediately and in writing when:you come upon a site condition which is inconsistent with the plans and specifications and/or you are directed to do work which is outside of the scope of your work;you need more time to complete your work2026for any reason;More items...
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.
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 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...?
Change orders can occur and are often unavoidable during the construction process. A change order is work that is added or deleted from the original scope of work and as a result the original contract amount and/or completion date of your project is modified.
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.
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 legally binding document used to make changes to the contract.