What is a Change Order? Definition
A “change order” is a document that is created during the execution of a construction contract, which modifies the terms of said contract. Change orders are used to record and authorize changes that are requested by the owner, architect, or general contractor during the project. This could be anything from a change in the design, to a change in the materials used, to a change in the schedule or scope of work. Change orders can also be used to add or delete work from the original contract. In this blog post, we will explore what change orders are, how they are used, and what their purpose is in the construction process.
What is a change order?
A change order is a formal document that is created when a contractor, subcontractor, owner, or architect wants to make changes to the scope of work in a construction project. The document is used to communicate the change(s), get approval from all parties involved, and track the cost impact of the change(s). Change orders can be used for both small and large changes, and they are a necessary part of the construction process.
What is the purpose of a change order?
A change order is a document that authorizes a change to the scope of work in a construction contract. The purpose of a change order is to document the agreement between the owner and contractor regarding the change, and to amend the contract so that both parties are legally bound to the new terms. Change orders can be used to add or delete work, extend the project timeline, or make other changes to the contract.
How to write a change order
If you’re working on a construction project, chances are you’ll need to write a change order at some point. A change order is simply a document that requests a change to the scope of work specified in the original contract.
Change orders can be used for a variety of reasons, including adding or removing work, changing the schedule, or increasing or decreasing the budget. Whatever the reason for the change, it’s important to put the request in writing so that everyone is on the same page.
Not sure how to write a change order? Here’s a step-by-step guide:
1. Discuss the proposed change with your contractor.
Before you put anything in writing, it’s important to have a conversation with your contractor about the proposed change. Discuss why you’re requesting the change and what impact it will have on the project. This will help ensure that everyone is on the same page and there are no surprises down the road.
2. Get an estimate for the additional work (if applicable).
If your requested change will require additional work, be sure to get an estimate from your contractor for how much it will cost. This will help you determine if your budget can accommodate the changes.
3. Put your request in writing.
Once you’ve discussed the proposed changes with your contractor and obtained an estimate (if necessary), it’s time to put your request in writing. The best way to do this is by drafting a
When to use a change order
When to Use a Change Order:
There are many reasons why you might need to use a change order. Perhaps the scope of work has changed, or you need to add or delete items from the project. Maybe the timeline has shifted and you need to make changes to the schedule. In any case, a change order can help streamline the process of making changes to your project.
Some common reasons for using a change order include:
-Adding or deleting items from the scope of work
-Changing the schedule or timeline
-Making changes to the budget
-Updating the specifications or drawings
Pros and cons of change orders
A change order is a formal document that request changes to an existing contract. Change orders should be used when the scope of work has been clearly defined and both parties agree to the changes. Change orders can be used to add or delete work, extend the contract duration, or increase or decrease the contract price.
There are several pros and cons to using change orders. Some of the pros include:
-Allows for flexibility in the project scope -Can be used to account for unforeseen circumstances -Can help avoid disputes between the parties by providing a clear record of changes
Some of the cons include:
-Can lead to cost overruns if not managed properly -Can cause delays if there are disagreements about the changes -Can create conflict between the parties if not handled correctly
Alternatives to change orders
There are a few alternatives to change orders that can be used in construction projects. One alternative is a contract amendment. This is a formal document that changes the terms of the original contract. Another alternative is a work order. This is a less formal document that simply instructs the contractor to make changes to the scope of work. Finally, a change request can be used. This is a more informal request for changes, and does not necessarily need to be in writing.
Conclusion
In construction, a “change order” refers to a written authorization to the contractor to make changes or modifications to the original plan. Change orders are typically initiated by the project owner or manager and approved by the contracting officer. The purpose of a change order is to document and authorize changes that have been made to the scope of work or contract price. Change orders can also be used to document modifications to the schedule or delivery date.