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.
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.
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...
A change order is a legally binding document used to make changes to the contract.
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.
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...?
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.
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.
To do this, negotiate the cost, receive authorization to begin the work in writing (change the scope), and make schedule adjustments for the amended work. Delaying change orders can be disastrous to a project because it can result in substantial cost overruns and an inaccurate schedule.