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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.
A change order is simply an addendum or amendment to the original construction contract and scope of work and can be initiated by the owner or the contractor.
A change order form should include a highly detailed description of the change and the new terms. It should also include other information, such as the new price, the name and address of the project, the owners name, and more.
Here are some examples of types of change orders in construction: Budget: When any changes are made to the amount of money a client can pay or the amount that a contractor or subcontractor needs to complete a project. Timeline: When a construction job is expected to take longer or to be completed sooner than expected.
Generally, there are four types of change orders. These are Time and Material, Lump Sum, Zero Cost, and Unitary Cost change orders. A lump sum change order is used when the defined change in the work scope is quantifiable, and a definite price developed.

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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.
Some of the most common reasons for change orders include: Inaccurate specifications in the original designs or contract. Ambiguous or inaccurate drawings. Unforeseen conditions at the job site, such as obstructions that could not be planned for. Workers or materials that do not arrive or come late to the site.
Some of the most common reasons for change orders include: Inaccurate specifications in the original designs or contract. Ambiguous or inaccurate drawings. Unforeseen conditions at the job site, such as obstructions that could not be planned for. Workers or materials that do not arrive or come late to the site.
The importance of change orders 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.
A Quick Guide to Managing Change Orders in Construction Get Clarity on Scope of Work. Review the Construction Contract. Get Written Approval for All Change Orders. Communicate With Stakeholders. Understand the Impact of Change Orders. Final Thoughts on Change Orders.

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