A remodeling project change order is a written document that outlines any changes or modifications to the original scope of work in a construction or remodeling contract as defined in either a Fixed Sum or Cost-Plus Contract Agreement . Change orders are common in construction projects when alterations to the initial plans become necessary due to various reasons such as design revisions, unforeseen conditions, client preferences, or other factors that impact the project.
When a change in the project scope is required, a change order is created to document the specifics of the alteration. This document serves as an official amendment to the original contract and typically includes the following information:
- Description of the Change: A detailed description of the specific change to the original scope of work is provided in the change order. This can involve changes to the design, materials, specifications, or any other aspect of the project that requires adjustment.
- Reason for the Change: The change order should explain the reason or justification for the modification. This can include design errors, new client requests, unforeseen issues, or any other factor necessitating the change.
- Cost and Pricing: The change order outlines the adjustments to the contract price resulting from the change. It should specify the additional costs or credits associated with the alteration, including any changes in materials, labor, permits, or other expenses. The change order may also indicate whether the change will impact the project’s timeline.
- Approval and Signatures: Both the client and the contractor need to sign and approve the change order to make it legally binding. This ensures that both parties are in agreement with the modifications and the associated cost implications.
- Revised Project Timeline: If the change order affects the project’s timeline, the document may include an updated schedule indicating the revised completion date.
Change orders are essential in construction projects to manage and document any deviations from the original plan. They help maintain transparency, avoid disputes, and ensure that both parties are aware of the implications of any changes to the project.
It’s important for clients and contractors to communicate openly and promptly when they identify the need for a change order. Delays in addressing necessary alterations can result in cost overruns, schedule disruptions, and potential disagreements.
As with any contract-related documentation, it’s crucial to keep a record of all change orders as part of the project’s documentation for reference and future accountability. Additionally, change orders should be prepared in a clear and comprehensive manner to avoid misunderstandings and to protect both parties’ interests throughout the remodeling project.