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.

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Change orders disrupt the schedules, cost more to administer, stress the client, and delay the job.
Should customers pay for change orders up front?
AMR performed work as directed by the owner, the owner performed some of the contractor's scope of work, and the owner paid AMR for additional work or deducted for work the owner's forces performed --all without a written change order signed by the parties as the terms of the agreement required.
Seeking payment
Change orders have an even more pronounced impact when it comes to fixed-price, lump-sum contracts.
Change orders in construction contracts
The owner should not be obligated to pay for any additional work without prior authorization by change order or other mutually accepted written directive.
Price check: healthcare construction projects can run rampant with cost overruns, but there are plenty of solutions available to keep teams on schedule and on budget
The additional cost for the change order would be approximately $100,550.
United States : Groundwork for spec building approved
KBR has been in negotiation of these change orders since late 2009.
KBR gets change orders for Yemen LNG project
34) Once a cardinal change has been demonstrated, this should "trump" any release in a specific change order.
The cumulative impact claim: where do we stand in 2010?
Apparently, a change order can be issued only when the work is related to an existing project.
Stiff question: Is the bill really city's?
2) Contractors can immediately bill 80% of this estimate, pending final issuance of the change order.
New York City's recent reforms: a missed opportunity
Using a time-and-materials pricing system makes it easy for everyone to estimate what a change order is going to cost.
How do you charge for change orders?
MOST BUILDERS MANAGE CHANGE ORDERS as a hodgepodge of verbal communications, faxes, and disparate Microsoft Excel spreadsheets stored in the local hard drives of their construction supers and office staffs.
Change is good: one North Carolina builder now sees change orders as an opportunity to sell more options
I am listening to the message of this change order.
How my kitchen remodeled me: Eileen Knoff found the "change orders" that came during a kitchen renovation weren't just for her kitchen

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