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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.
Mastering the Change Order Process in Construction Start With the Contract. ... Review Plans and Specifications. ... Don't Ignore or Delay Change Orders. ... Communicate With All Parties Involved. ... Negotiating the Change Order. ... Document Everything.
What is a Change Order? "Change order" is just the industry term for an amendment to a construction contract that changes the contractor's scope of work.
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.
The construction change order represents an amendment to the original contract, which defines the project's scope of work and references plans, drawings, and specifications. Change orders in construction are very common, and occur in almost every commercial and public project.
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Classic examples of change orders include the owner's 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.
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 owner's and contractor's information.
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.
The construction change order represents an amendment to the original contract, which defines the project's scope of work and references plans, drawings, and specifications. Change orders in construction are very common, and occur in almost every commercial and public 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.

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