Change Order
Change Order Number ___
Pursuant to that agreement between _________________, described herein as OWNER and __________________, described herein as CONTRACTOR, dated _____________ the following change is made in the specifications and scope of work to be performed:
____________________________________________________________.This results in an increase of the total contract price in the amount of $ ______ (______&___/100 dollars) and an adjusted total contract price of $ _____ (______________&___/100 dollars). This Change order shall be due and paid separately on a Net 30 Day basis from the date of completion which is estimated to be ________________.
Dated: _______________________________________
Accepted by:
______________________________________________________ OWNER
______________________________________________________ CONTRACTOR
Change Order Number ___
Review List
This review list is provided to inform you about this document in question and assist you in its preparation. Change or Work Orders are one of the only profit opportunities for construction companies. If you are a contractor, be sure to so advise your clients so they understand that “changes” are much more expensive than original work. When estimating Change Orders remember that lots of time can be absorbed in the quotation process. So be sure to provide for that extra time when you quote on these jobs. If you are the owner, do everything in your power to preplan events so you do not need to enter into these expensive changes.
1. Make multiple copies. Give one to each party.
Frequently Asked Questions
What is a change order in construction?
A change order is a document that modifies the specifications and scope of work in an existing construction agreement. It is made pursuant to the original contract between the owner and contractor. The change order also adjusts the total contract price accordingly.
What information is included in a change order?
A change order includes the change order number, the parties' names, the date of the original agreement, and a description of the change in specifications and scope of work. It also states the increase in the total contract price and the adjusted total contract price. Payment terms and an estimated completion date are also specified.
How does a change order affect the contract price?
A change order results in an increase of the total contract price by a specified amount. It also provides the adjusted total contract price after the change. The payment for the change is due separately on a Net 30 Day basis from the date of completion.
What are the payment terms for a change order?
The change order amount is due and paid separately on a Net 30 Day basis from the date of completion. The estimated completion date is specified in the change order. This means payment is due 30 days after the work is completed.
Who needs to sign a change order?
A change order must be accepted by both the owner and the contractor. The document includes signature lines for both parties. Their acceptance indicates agreement to the change in scope and price.
Why are change orders important for contractors?
Change orders are one of the only profit opportunities for construction companies. Contractors should advise their clients about this so they understand that changes are significant. This helps ensure that changes are properly documented and paid for.
What is the purpose of a change order review list?
A change order review list is provided to inform you about the document and assist in its preparation. It highlights key considerations, such as the profit opportunity for contractors. It serves as a guide for reviewing and preparing change orders.
How is the adjusted total contract price calculated?
The adjusted total contract price is calculated by adding the increase amount to the original total contract price. The change order states both the increase and the new adjusted total. This ensures all parties are aware of the financial impact.
What happens if a change order is not signed?
If a change order is not signed by both the owner and contractor, it is not accepted. The change in specifications and scope of work would not be authorized. Consequently, the contract price adjustment would not be binding.
Can a change order be used for any type of construction project?
A change order is used pursuant to an existing agreement between an owner and a contractor. It applies to changes in specifications and scope of work for that project. The document is generic and can be adapted to various construction projects.
