Contract change order 2025

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A fixed sum or lump sum change order is used when changes to the project scope can be accurately quantified, thereby resulting in an overall cost increase for the project. Time and materials (TM) change orders are generally needed when the full scope of the proposed changes are unknown.
At its core, a change order is an agreement among all parties involvedowner, contractor, and architectthat formalizes adjustments to the scope, cost, and timeline of the project.
Scope Change Orders: Any change in the scope or specifications of the project not part of the original contract. Time Change Orders: Change events that alter the projects timeline or completion date and affect the contract require a change order.
Contractors can add a charge for change orders within the contract to help deter owners from making constant changes. Generally, a construction change order markup of 10% of the net direct cost is considered an acceptable and reasonable charge for change orders.
A change request is a proposal or request for a change order, either initiated by the owner or the contractor, or resulting from unforeseen conditions or errors. A change order is legally binding and requires approval from both parties, while a change request is not yet an agreement and may be rejected or negotiated.
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Almost all written construction contracts require that the contractor obtain a written change order as a condition to payment for the additional work.

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