Contract Change Order Template
A contract change order is often a document written by a project manager to change an aspect of an existing contract for instance needs, amount, or time. This can also consist of changes to drawings and specifications. These alterations has to be inside the contract scope and adhere towards the contract’s changes clause.
Also called a modification order, this document is frequently made use of within the building sector because of the frequency of modifications, additions, deletions, as well as other adjustments primarily based on neighborhood ordinances and specifications. The change order allows any authorized particular person to make these alterations without the need of consent of the contractor. As with other contract amendments, change orders have to satisfy the original contract’s give, acceptance, consideration exchange, and reasonable identification of changes.
change orders are usually a source of dispute because they’re modifying the terms of an currently difficult project. By far the most prominent concerns brought on by change orders involve the need to have for new permits and influence to the spending budget and/or timeline. By far the most severe concerns occur when a dispute results in the alter, often more than more payment. Contractors who fear they may not get paid for the added perform brought on by a change could slow down or cease perform altogether, while home owners may perhaps really feel that the contractors should really have factored the have to have for adjustments into their original project bid.
Owners may perhaps be prudent to provide potential contractors a pre-site inspection so they could superior realize the scope on the project just before bidding. The more accuracy and detail provided within the initial contract, the less probably that a modify order will be needed. Requiring modify orders in writing makes it possible for owners to approve adjustments that affect the scope of function. Giving a time limit for change orders immediately after the need to have for the change was submitted can also be beneficial.
The original contract should deter operate slow-downs and stoppages having a liquidated harm clause that creates a penalty for breach of contract caused by a perform stoppage. This isn’t an estimate of damage but a fine to stop the breach from taking place.
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Free Printable Change Order Contract Template – download