Change orders in construction have several important elements. Typically, these documents change construction work or time requirements. Using these documents, clients leave wiggle room to anticipate unexpected challenges or variables. They are also often used to correct errors or ambiguities in plans, accommodate client’s aesthetic desires, and reduce costs to the client. As a construction office manager, you can use change orders to navigate the complex, dynamic nature of construction projects. In this post, we will discuss some crucial elements of change order construction.
Project & Contact Information
Project and contact information provide an essential element of construction change orders. This information links proposed changes to a specific contract, especially during large-scale commercial or government projects. Of course, a change order form must include the contract number, owner’s name, and contact information. It must also include the name and contact info of the Prime Contractor, Architect, or Engineer. Furthermore, the project’s name, address, and other contractors’ contact info should also be included. Moreover, each change order should have an associated number. This number denotes how many change orders have been submitted. This information can be fed into contract management software construction. Surely, project and contact information offer focus to change orders.
Additionally, proper documentation presents another important element of change orders in construction. Using proper documentation methods, you avoid disputes, claims, and other legal liabilities on your constuction projects. In fact, avoid starting change order work without a signed, authorized, and executed document from your client. This document should contain costs and any other negotiated elements. When starting change order work, document the work being performed, including time and material costs. Then, share the document with your client and discuss any issues they may have. This way, you establish a consistent method of managing change orders across your business, regardless of their complexity. Absolutely, document each step of the change order process properly to ensure compliance and avoid liabilities.
Scope Of Work Clause
Moreover, change orders in construction contain revised scope of work clauses. Of course, original scope of work clauses are included in the original contract. Therefore, change orders must contain revisions to these clauses to hold clients and contractors accountable to negotiated terms. Detailed scope of work clauses provide essential information for costing projects and managing client expectations. In fact, they are essential to self-build construction loans qualifications. This way, you can work with your client to ensure the change order includes everything they want, and everything you can provide. Working with the client like this offers them transparency, which often helps in calculating future values. Certainly, scope of work clauses determine the work changes in your change order construction.
Additive Or Deductive Elements
Furthermore, construction change orders include either additive or deductive elements. In simplest terms, additive elements add or change parts of the project’s execution. For instance, your client may want to change paint colors, or move structural elements from one location to another. Typically, additive changes like this increase the labor, equipment, and materials needed for the project. Therefore, they lead to increased costs to the client. Meanwhile, deductive elements request deletion of work portions. Of course, less work means lower costs. Reductions in work requirements may also cut time off the project schedule. Definitely, additive or deductive elements determine the changes included in your change orders.
Cost & Schedule Changes
Construction change orders contain proposed cost and schedule changes, as well. They should include all relevant changes, such as the original contract amount and net change from previous change orders. On the first change order, this value should be 0. Additionally, change orders must contain contract sums or GMP prior to the current order, and whether it will increase, decrease, or remain the same. Moreover, include a new contract sum or GMP for the current order. Using this information, you can determine if contract time will increase, decrease, or stay the same. This way, you can provide a new date of substantial completion. Of course, safety considerations including how to stay cool working construction should be factors affecting these changes. Assuredly, cost and schedule changes are an imperative change order element for shareholders.
Change order construction contain several important elements. For example, project and contact information offer focus to change orders. Second, proper documentation of each step in the change order process ensures compliance and avoids liabilities. Third, scope of work clauses determine the original contract elements your change order construction impacts. Next, additive or deductive elements determine the changes included in your change orders. Finally, cost and schedule changes are an imperative change order element for shareholders. With knowledge of these elements, you can rapidly complete complex, dynamic construction projects.