A change order is a document that modifies the original contract between a contractor and a client. Change orders are used to make changes to the scope of work, the schedule, or the budget of a project. They can be used to add or delete items from the scope of work.
Change orders are typically initiated by the client, but they can also be initiated by the contractor. When the client initiates a change order, they must provide the contractor with a written description of the change they are requesting. The contractor can then review the change and provide an estimate of the cost and time it will take to complete.
If the contractor agrees to the change, they will issue a change order to the client. The change order will document the change, the cost, and the time it will take to complete. The client will then be required to pay the contractor for the change.
Change orders are an important part of the construction process. They allow the client and the contractor to make changes to the project as needed. Change orders can also help to prevent disputes between the client and the contractor.
Here are some of the reasons why change orders are necessary:
- The scope of work may change. The client may decide that they want to add or remove something from the project.
- The schedule may change. The client may need the project to be completed sooner or later than originally planned.
- The budget may change. The client may decide to increase or decrease the project’s budget.
Change orders can be a complex process, but they are an important part of the construction process. By understanding change orders, you can help to ensure that your project is completed on time, within budget, and to your satisfaction.