What Is Construction Change Order Form?
A construction change order form is an agreement between two parties on a project which is purposed to amend or change the terms in the contract. The document discusses certain things need to be added or removed from its original scope of work. This also discusses how to duties will be performed. In the document, the change orders will be described as wells as the supporting documents, an overview of the costs and also the potential impact that might happen.
How Important Is The Construction Change Order Form?
In case your customers want you to work more than you agreed to, want to change the details of the project significantly, etc, you need to draft this document.
- The customer’s perspective – Some customers often have paid the work and do something based on their liking. For example, while you are doing your work, suddenly your customer tells this “While doing this project, can you also finish this stuff?”. They don’t realize that small changes can cost a lot from the materials, labors and time.
- The Contractor perspective – Each contractor and also subcontractor understands that even a little change will cause money. The customer might see it as a simple issue but it ends up with the complicated work that you can charge them more if you do some changes on the agreement. In the end, the clients don’t pay the changes and only pay what has been documented.
Some Changes Order Tips
Some changes might be daunting tasks as this will impact on many things from your business. But by having the change orders will help you add the additional services requested by your clients. You also can include the relevant cost. Therefore, the construction change order form is the best practice because you get the written agreement so this will clear out any ambiguity in your contract. So, in the future, there will be no more confusion.
So, here are some quick tips to handle this situation:
- Plan Ahead – You need to perform the pre-construction to evaluate and minimize the changes requested by your clients. Discuss it with your clients about the omissions and errors including reviewing the specs before the real project execution. You also need to identify the uncertainty and potential risk in these areas.
- Use The Construction Change Order Form – paperwork has been always a serious problem in this industry. With different contractors, subs and also suppliers in every project, having a standardized template will save you from excessive money and time spending.
- Include Detail Information – This change request should be done quickly and easy to be evaluated. You need to include details as much as you can so you can minimize the costs. You can provide the evidence through daily reports, marked-up plans and also specifications form/photos. The more detail, the more you will likely your project to be approved.
Remember that the change order is done only when both parties agree. This also should follow the original contract unless the changes are so big which leads to discarded contract and you need to renew it.
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