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change order |
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change order A written order from the owner, architect, engineer, or other authorized person to depart from previously agreed upon plans and specifications for construction. Change order management is a critical aspect of any construction job, as change orders frequently change the cost of the job, usually in an amount in excess of what might otherwise be expected. Many subcontractors bid jobs at break-even prices in order to secure the work, confident that numerous change orders will provide the profit necessary. Example: An electrician might contract to perform all wiring and electrical work for a home for $2,000. Additional outlets added by change order might be billed at $65 each, even though the additional labor and materials might amount to only $5 each. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Last week, city councillors approved a contract change order with Palmer Paving, builders of the city's new truck route, to hire a railway contractor. This $8 million project was completed within the contract schedule, scope and cost, with significant savings through change order negotiations, value engineering and schedule acceleration. ``Making these changes after contracts have been awarded through the change order process, as we have experienced, can be costly,'' he cautioned. |
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