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.
What is an example of a change order in construction?
Classic examples of change orders include the owner's desire to move the location of a wall to accommodate some other design element, adding a window where there was none in the original plans, or changing the finish of the floors from tile to terrazzo.
What are the 2 types of change orders?
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 requires a change order?
But uncontrolled change can quickly eat into profits, even derail a project. That's why savvy construction firms have a hard-and-fast rule: Anything that requires a modification to an existing construction contract requires a change order, which details revisions in a project's scope of work, cost and schedule.
Who initiates a change order?
A change order is simply an addendum or amendment to the original construction contract and scope of work and can be initiated by the owner or the contractor.
Do any HGTV shows pay for renovations?
Does HGTV pay for the renovations? There's a common assumption that making it on a show comes with a free renovation, or at least discounted goods. On the contrary, homeowners have to come up with the money for the projects.