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Change Order Process Review the Contract and Identify the Reason for the Change Order. Create a Change Order Request. docHub an Agreement About the Change Order Proposal. Get Approval On the Change Order and Adjust the Contract. Use a Change Order Log to Keep Track of Change Orders.
Definition. An oral or written act or omission by the contracting officer or other authorized Government official that is construed as having the same effect as a written change order. A Government informal order can be defined as words or deeds excluding advice, comments, suggestions, or opinions.
Change order percentages between 8.0 percent and 15.0 percent are usually considered acceptable and reasonable. Profit The contractors profit, as a percentage of the sum of the total direct and indirect costs, should be within a reasonable range.
Change orders typically consist of three parts: the project information, the changes to the contract, and the change in cost and time for performance. Project information includes the project name and the owners and contractors information.
Classic examples of change orders include the owners 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 change order form should include: The original contract value. The value of all past approved change orders (if any) The cost of the current change order. The new proposed contract value (including all of the change orders, positive or negative)