Easily Replace Option Field to the Construction Contract

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How to Replace Option Field to the Construction Contract

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[Music] we are a team of techno-legal professionals who deal with the challenges faced by the construction industry today topic in the earlier video we have spoken about the change of scope or variations for cash contracts and now in this video we shall talk about the change of scope free PC contracts because this is different from the item rate contracts in many ways in EPC contracts as well there are clear Provisions given for dealing with any variation or change of scope which arises during the currency of the contract which was not envisaged during the stage of tender preparation and feasibility studies or detailed progress report preparation but there is a difference between item rate contracts and EPC contracts contracts are fixed some contracts wherein risks and rewards are to be born slash enjoyed by the EPC contractor whereas in item rate contracts the contractors risks are minimal there are other forms of contracts like ham and Bot which are more risk slash reward based as w

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How do you add a change order to a contract?

How to Write a Change Order Step One: Identify the Changes. The first step to writing any change order is identifying the changes that need to be made. Step Two: Discuss the Changes. Step Three: Create an Action Plan. Step Four: Write the Change Order. Step Five: Sign the Change Order.

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 proper step for a change order on a project?

How to Write a Change Order Step One: Identify the Changes. The first step to writing any change order is identifying the changes that need to be made. Step Two: Discuss the Changes. Step Three: Create an Action Plan. Step Four: Write the Change Order. Step Five: Sign the Change Order.

What should be included in a change order?

At a minimum, all change order forms should identify the following: The name and address of the project. The owners name. The name and phone number of the person requesting the change. A complete description of the planned work. The price of the change (including a breakdown of the costs as well as the total)

What is the difference between a field order and a change order?

A field order contains a statement that it shall be superseded by a change order that includes the actual adjustments, if any, to the contract sum and the contract time, as well as the change in the scope of the work.

What three things must agreed upon for a change order?

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.

What is an example of a change order in construction?

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.

What is the change order process?

What is a Change Order? Change order is just the industry term for an amendment to a construction contract that changes the contractors scope of work.

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Replace Option Field to the Construction Contract