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What is the purpose of the addendum?

An addendum is used to clarify and add things that were not initially part of the original contract or agreement. Think of addendums as additions to the original agreement (for example, adding a deadline where none existed in the original version).

What are the 2 types of change orders?

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.

What is the difference between change orders and contract modifications?

So there you have it: a Change Order is the way to modify scope of the Project, and a PO Revision is the way to modify the scope of a specific contract or purchase order. Projects normally undergo many change orders and revisions throughout the whole execution.

How do you manage contract change orders?

Change Order Process Review the Contract and Identify the Reason for the Change Order. Create a Change Order Request. docHub an Agreement About the Change Order Proposal. Get Approval On the Change Order and Adjust the Contract. Use a Change Order Log to Keep Track of Change Orders.

What is the difference between amendment and change order?

A change to the work, or change order, is an amendment that is permitted to occur through contract administration. A change order can change contractor tasks, standards or methods, and as a consequence may require adjustment to the contract price or contract schedule for the changed work.

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What requires a change order?

But uncontrolled change can quickly eat into profits, even derail a project. Thats why savvy construction firms have a hard-and-fast rule: Anything that requires a modification to an existing construction contract requires a change order, which details revisions in a projects scope of work, cost and schedule.

Is an addendum a change?

A contract addendum is an additional document that is attached to the original contract. It is used to include supplementary information, such as additional terms, conditions or provisions. Unlike an amendment, an addendum does not modify the existing terms of the contract, but rather it expands upon them.

What is the difference between an addendum and a change order?

A Change Order is used to exchange or modify materials and/or work listed on the Scope for other materials or work. An Addendum is used to add additional work (labor and/or materials) to the Scope.

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