Change Order

What is change order?

When a work is added or deleted from the original contract of work through a written order then it is known as change order. The change in the work also alters not only the amount f work that has to be done but also the time frame in which the work has to be completed. The other form of the change order can even start a newer project in the form of a branch fro the min project that is running currently.

Reasons behind change orders

1. The job that has to be done in the project was not estimate correctly
2. There are new obstructions that will inhibit efficient disposal of the project.
3. The ability of the working team is questionable and needs change in the project aim
4. There are new possibilities identified and perceived important to include in the project
5. Increased demands of the customer have to be met during the ongoing project.
6. Inevitable weather conditions that will not allow the contractor to finish the work in stipulated time and budget.

What should a change order contain?

The change order is generated by the project manager. The project manager issues a change order that will contain all the new jobs to be performed in the ongoing project. Along with the job change the project manger is also responsible for the mention of the newer price that is to be paid for the job and the new time frame in which the job needs to be completed.

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Sample Template Preview

Modification Agreement
“Change Order”

The following is a modification of the Independent Contractor Services Agreement dated the_______day of  ______________, 20___, between __________________________,as Contractor and  _____________________________as Customer.

Customer and Contractor herewith agree to modify the original Independent Contractor Services Agreement as follows:

Work to be performed: _____________________________________________________
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This modification will result in additional time of _______ days to be added to the original completion date, there by extending the agreed completion date to _________________, 20___. The penalty agreement is also extended and will take effect on ________________, 20___.

This modification will result in a increase or decrease (circle one) in the amount due upon the completion of this project by $_____________. This sum will be included in draw # _______________________ or $______________. To be paid when the above modified work has been completed.

_______________________________            ________________
Contractor                            Date

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Customer                            Date