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What are the best ways to track change orders for timely completion and payment? Define a clear change order process. Use a standardized change order form. Implement a change order tracking system. Communicate and collaborate with the stakeholders. Review and evaluate the change orders. Train and educate the staff.
What is a change order log?
Change order percentages between 8.0 percent and 15.0 percent are usually considered acceptable and reasonable. Profit The contractors profit, as a percentage of the sum of the total direct and indirect costs, should be within a reasonable range.
What is the difference between a PO and a change order?
A Change Order, therefore, modifies the whole project budget based on any change in project scope. A PO Revision by comparison, just changes a specific purchase order. Its not uncommon to see a change order precede a PO revision since they can be tightly connected.
Why should a contractor keep a record of all change orders?
Without a change order documenting the newly expanded scope of work and the impact on the price of the contract, it is easy to see where problems can occur. By documenting changes and their impact on the original contract (e.g., price, scope of work, deadlines, schedule, etc.), unnecessary disputes can be eliminated.
What is the purpose of a change order?
What is a change order? A change order is a document used to alter the original agreement on a construction project. It details the changes in the scope of work, cost, and schedule that are required. In many instances, the construction contract dictates the change order process.
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The Change Request Log Template provides a centralized view of the current status of project change requests. It is used to communicate a simple, summarized view of the number and nature of change requests currently being managed by the project.
change order for construction
Instructions to Contractors
The log should include the change order number, item description, projected amount of cost, date submitted to the Owner, date the change order was approved in
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