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- The contractor should create a change order as soon as the client comes to you with a request to revise their design and contract. Doing so will allow your team to stay on track and begin preparing for the project’s changes by procuring necessary materials and updating the schedule with subcontractors where necessary.
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This article will discuss: (1) the basic definition of a change order, (2) “changes in the work” clauses and the legal basis for change orders, and (3) a few pointers for handling change order disputes.
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Additionally, change orders may be necessitated by approved substitutions, changes in insurance, the owner failing to maintain required insurances, settlements of insured losses, and reconciliation of allowances and unit prices.
Change orders are a formal procedure for charging for “extra” work – items not included in the original fixed-price bid. Change orders are typically issued when work is added or changed in ways that add cost. On occasion, “deductive” change orders are used to reduce the amount of work and cost.
Aug 16, 2023 · A change order must be agreed upon–usually in writing–by the two parties relevant to it prior to any action being taken. This may mean agreement between a project owner, general contractor and subcontractor, between an owner and general contractor, or any other group of contractually bound parties.
Nov 21, 2023 · What should a change order form include? The goal of a change order is to outline the details and impact of the change on the scope of work specifically and thoroughly. This helps to avoid misunderstandings and ideally reduces the time spent on negotiations.
Jul 6, 2023 · If the change order is approved, it should be registered in a change order log. A change order log captures all change orders of a project and ensures they’re going as scheduled. Best Practices for Construction Change Orders
Jun 19, 2024 · Completing a change order correctly minimizes risk, improves the chances of approval, and helps contractors get paid faster. The article contains information on how to fill out a change form, key details to include, and pitfalls to avoid during the change order process.
