{"id":8677,"date":"2023-09-27T23:22:10","date_gmt":"2023-09-27T23:22:10","guid":{"rendered":"https:\/\/businessyield.com\/tech\/?p=8677"},"modified":"2023-10-30T06:35:52","modified_gmt":"2023-10-30T06:35:52","slug":"change-order-construction","status":"publish","type":"post","link":"https:\/\/businessyield.com\/tech\/technology\/change-order-construction\/","title":{"rendered":"CHANGE ORDER CONSTRUCTION: What Is It and How It Work?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

A change order is a written amendment to a construction contract that changes the scope of work, price, or project schedule. Change orders can be initiated by either the owner or the contractor, but both parties must agree to the changes before they can be implemented.<\/p>

Change orders are common in construction, as unexpected events can often arise during a project. For example, the owner may decide to add or remove features from the project, or the contractor may encounter unforeseen site conditions. Change orders can also be necessary to comply with new regulations or to address design changes.<\/p>

While change orders can be necessary, they can also be disruptive and costly. It is important for both owners and contractors to understand the change order process and to carefully manage all change orders throughout the project.<\/p>

So, in this article, we will give you more details on what and how change order construction works.<\/p>

What is Change Order Construction?<\/span><\/h2>

A change order is a legal document that modifies the initial construction project agreement. It describes the necessary adjustments to the work’s scope, price, and timetable.<\/p>

In many cases, the construction contract governs the change order procedure. Specific instructions on how to handle and process the change order should be included in the contract.<\/p>

Change orders could affect a contractor’s obligations, jeopardize payment, and change the project’s scope and timetable.<\/p>

When do construction change orders usually occur?<\/span><\/h2>

Change orders actually affect more than a third of projects because they are so common. As a result, you may anticipate encountering a lot of modification orders throughout your construction career. Although this is the case, a surprising number of contractors neglect to account for them, making this one of the most frequent reasons for cost overruns.<\/p>

According to the Journal of Construction Engineering, “Design fault, inadequate scope, weather, project changes, and underestimating the time needed to complete the project are several reasons for construction cost and schedule overruns in any project. Change orders frequently come from items left out of the engineer’s estimate of the project because of poor design or an inadequate scope, which drives up cost and delivery time.<\/p>

The following are a few of the most typical causes of change orders:<\/p>