What are the types of change orders in construction?

Generally, there are four types of change orders. These are Time and Material, Lump Sum, Zero Cost, and Unitary Cost change orders. A lump sum change order is used when the defined change in the work scope is quantifiable, and a definite price developed.

What is in a change order?

A change order is a document used to alter the original agreement on a construction project. It details the changes in the scope of work, cost, and schedule that are required. In many instances, the construction contract dictates the change order process.

Are change orders common in construction?

Change orders can occur and are often unavoidable during the construction process. A change order is work that is added or deleted from the original scope of work and as a result the original contract amount and/or completion date of your project is modified.

What is an RFI in construction?

A request for information (RFI) is a document used during the construction process to get clarification about the necessary details of a project. Construction RFIs are extremely common: Navigant Construction found that roughly 10 RFIs occur for every $1 million spent on construction.

What is the difference between an amendment and a change order?

“Change order” is just the industry term for an amendment to a construction contract that changes the contractor’s scope of work. For there to be a valid change order, the owner and contractor must both agree on all terms.

What causes change orders in construction?

Some of the most common reasons for change orders include: Inaccurate specifications in the original designs or contract. Ambiguous or inaccurate drawings. Unforeseen conditions at the job site, such as obstructions that could not be planned for.

Who signs a change order?

The change request typically contains elements describing the change and other documentation. Change orders should be signed by the primary contractor, the owner, and a third party that is affected by the change such as the construction lender or the bonding or surety company.

What is a project change order?

Change order. In project management, a change order also referred to as a contract change note refers to the changes in the scope of work agreed to by the owner, contractor, and architect or engineer.

What is a change order?

A change order is work that is added to or deleted from the original scope of work of a contract, however, depending on the magnitude of the change, it may or may not alter the original contract amount and/or completion date. A change order may force a new project to handle significant changes to the current project.

What is the Order of variation?

A Variation order is an agreement by two members of an agreement (contract) to modify the contract to add or subtract work. (Positive / Negative Variation Order) A claim is a request by one party of the agreement for payment or other relief from some change in the agreement that they believe if due them but the other party doesn’t agree with.