When it comes to construction change orders, you need to consider many factors to ensure the best results.
This article will discuss some of the key things project managers need to keep in mind when change orders arise. We will also provide a template for a change order form so that you can get started on the right foot.
What is a Change Order?
A change order is a formal document used to request changes to an existing construction contract. These changes can be in the form of additional work, deleted work, or a change in the scope of work. Change orders are typically generated by the contractor or project manager and then submitted to the owner for approval.
Types Of Change Orders
There are four main types of change orders: timeline, budget, materials, and change in scope of work.
Timeline
Timeline change orders are requested when the contractor needs more time to complete the work. This could be due to unforeseen circumstances, such as bad weather or a delay in receiving materials.
Budget
Budget change orders are requested when the contractor needs more money to complete the work. This could be due to an increase in the cost of materials or labor.
Materials
Materials change orders are requested when the contractor needs to change the type or quality of materials being used.
Scope of Work
This type of change order is anything not encompassed by the previous three types. It could be a change in the design of the project or an addition to the scope of work.
What to Include in a Change Order Form
There are a few key things that should be included in a change order form:
Contract Number
The contract number should be included so that both parties can reference the original agreement.
Contact Details
The contact details of both the contractor and the owner should be included so that there can be open communication about the change order.
Project Details
The project details, such as the address and scope of work, should be included so that both parties are clear about what is being changed.
Deadlines and Other Important Dates
Any deadlines or other important dates should be included in the change order form so that both parties can agree on a timeline.
Information About the Change
The change itself should be clearly described in the change order form so there is no confusion about what is being requested.
Changes in Price or Timeline
If there are any changes in price or timeline, they should be clearly stated in the change order form.
Outline of Original Contract vs. Proposed Changes
An outline of the original contract vs. the proposed changes should be included so that both parties can see what is being changed.
Signatures
The contractor and the owner should sign the change order form to agree to the changes.
Tips For Managing Change Orders
There are a few key tips project managers should keep in mind when it comes to changing orders.
Be proactive
Change orders are often the result of a lack of communication. To avoid this, make sure to keep the lines of communication open with both the contractor and the owner.
Review your contract
Before you submit a change order, review your contract to make sure that the change is within the scope of work.
Get everything in writing
Any change order request should be submitted in writing so that there is a formal record.
Review change orders carefully
Change orders can be costly, so it’s essential to review them carefully to ensure they are necessary.
Have a standard change order form
A standard change order form will help streamline the process and ensure that all of the necessary information is included.
Communicate the change
Once a change order is approved, communicate the change to all parties involved. This will help to avoid any confusion or delays.
Construction Change Order Form Template
A change order form template is attached below for your reference.
This change order form template can be used to request changes to an existing construction contract. Simply fill out the form with the relevant information and submit it to the owner for approval.
Contract Number: ______________________________
Contact Details:
Contractor: ______________________________
Owner: ______________________________
Project Details:
Scope of Work: ______________________________
Location: ______________________________
Deadlines and Other Important Dates:
____________________________________________
Information about the change:
____________________________________________
____________________________________________
____________________________________________
Changes in price or timeline?
Price: ______________________________
Timeline: ______________________________
Outline of original contract vs. proposed changes:
Original Contract: ______________________________
Proposed Changes: ______________________________
Signatures:
Contractor: ______________________________ Date: _______________________
Owner: ______________________________ Date: _______________________