Easily Replace Option Field to the General Contractor Agreement

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How to Replace Option Field to the General Contractor Agreement

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joe just answer i just asked another question here while learning how to price a job did you under bid and realize it should have cost more for the job yes and i i think weve all gone through that you know everybody thats been in in construction uh there yeah theres definitely times where i under bid a job and i learned from that so now the way that i have it set up um you know over time you learn all this and if you have a good contract in place that can protect you and your customer then then thats thats where a lot of the times you know theres jobs we take on where theres an unforeseen circumstance you know and a lot of the new guys dont know like oh you know its gonna cost us more but i dont have this in my contract so the customers not wanting to spend more and they try to take advantage of of contractors as well sometimes so you know if its an unforeseen circumstance you should have that in your contract where you know if something shows up or theres rot or something

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Why is it important or crucial that a change order option is available in a construction project?

Change orders are essential for construction contractors. They protect contractors from being pressured into doing extra work beyond the agreed-upon terms of the contract. This can be a big deal if your client asks you to add more work without being agreeable to paying for it.

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.

Why is it important for change orders to be carefully managed by a construction project manager?

However, if the change orders are not prepared carefully and in detail, then they might cause many issues between the involved parties and in the end may cause increase in the project cost and delays in the project completion time.

What is the impact of change order?

Increase in cost and duration are the two main effects of change orders. ing to Mohammed F. Al-Hams (2010), scope and quantities of work is the main source of change order, design errors is the second source of change order. Additional payment for contractor is the main effects of change orders.

Why do construction projects have change orders?

Common reasons for change orders include inaccuracies in the original design or contract, inaccurate drawings, unforeseen conditions at the job site, and more. Change order form submissions can be prepared for. Ideally, this happens with instructions on how to handle change orders in the original contract.

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 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.

Why is it important to document contract changes in project management?

By documenting changes and their impact on the original contract (e.g., price, scope of work, deadlines, schedule, etc.), unnecessary disputes can be eliminated. It is absolutely essential to ensure that all parties understand and agree to any changes to their agreement.

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