Easily Replace Dropdown in the General Contract

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How to Replace Dropdown in the General Contract

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morning everybody my name is Alex Bart that Im a board-certified construction lawyer here in Florida and today were going to talk about the this one change order mistake I see clients make on a pretty pretty regular basis that they dont have to make so lets get started and dive into this topic so today Im going to talk about what a change order is give you the brief definition whats missing for most change orders why its so important that you add this one thing to your change orders and then what are some of the best practices that we see clients employ in dealing with their contracts and change orders so lets get started what is a change order a change order is a change to a contract and it typically addresses one of three things or all of these three things which is the scope of the work maybe youre adding work or reducing work or materials dollars maybe the contract price goes up or down and or time there are other things that can be changed in a change order so you can add

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What are the two types of change orders?

Because of these changes to budget and schedule, change orders are not acted upon until both the owner of the project and the contractor responsible for the change agree on terms and conditions. There are two types of change orders: additive and deductive.

What are the forms of change order?

Because of these changes to budget and schedule, change orders are not acted upon until both the owner of the project and the contractor responsible for the change agree on terms and conditions. There are two types of change orders: additive and deductive.

What are the three categories of change orders?

These are Time and Material, Lump Sum, Zero Cost, and Unitary Cost change orders. Lump Sum. A lump sum change order is used when the defined change in the work scope is quantifiable, and a definite price developed. Zero Cost. This is similar to a lump sum change order. Time and Material (TM) Unitary Cost.

What is the change order process?

In construction, a change order refers to the documentation of an agreement to add or subtract work, alter the design, revise the schedule, modify the price, or deviate from the original project in some other way.

What is the difference between a change order and an addendum?

A Change Order is used to exchange or modify materials and/or work listed on the Scope for other materials or work. An Addendum is used to add additional work (labor and/or materials) to the Scope.

How to do a change order in a 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.

What are the three types of change orders?

What are the types of change orders? The four most common types of change orders in construction are: lump sum (when the change can be quantified in price); zero cost (no change in price); time and material (cost cannot be estimated); and unitary cost (a change in scope that can be defined by measurement units).

What are two examples of change order?

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.

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