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What is a Change Order in Construction? - Reasons for One

Written by Posted On Friday, 19 October 2018 09:39
What is a Change Order in Construction What is a Change Order in Construction What is a Change Order in Construction

What is a change order in construction? It is when the original changes are made to the original agreement for a project. For example, if the project was supposed to be completed in a given period of time, other features such as lack of funds by the client, obstacles blocking the contractor and the failure of the contractor to access certain tools can lead to delay in completing the project. In such a case, the parties involved in the project may have to negotiate the deal so that the terms and conditions can be changed so that the project can have new terms.

What is a Change Order in Construction

Poor Estimation of the Project Work

The project completion time should be estimated by the contractor so that the client can know the exact time when the project can be completed. There are cases where the time estimation may be wrong which makes it impossible for the contractor to deliver under such timelines. In such a case, the change order can be introduced where the contractor will have to negotiate for the timeline to be changed. It is necessary to accurately estimate the time so that you can avoid change order which can make the project more expensive.

Obstacles Leading to Deviation From the Project Plan

There are a variety of problems that can cause the contractor to fail to complete the work on time. For example, failure of equipment during the construction work can make it hard for the project to be completed on time. For example, if your equipment fails, you will have to spend more time in repairing the tools so that you can proceed with work. There are even cases where the ground may be unsuitable for a given project which will require the contractor to carry out certain procedures before he can continue with the construction work. In such a case, the project may delay which leads to negotiating of new terms.

Failure in One of the Parties in Completing Derivable

The three parties involved in the project completion have roles to play. For example, the architect has to deliver the design. The client has to fund the project and the contractors have to work and deliver the project. There are cases where the contractor may be willing to accomplish the project in time but the client may be unable to avail the funds in time. In such a case, it can lead to project delay which will be hard for the project to be completed on time.

Incorporation of More Features to the Project Midway

There are some clients who would like to introduce new features to the project in the middle of the project implementation process. In such a case, the contractor has to negotiate foe the new terms and even ask for more resources. The change order has to be applied in such a case which will lead to a change in the scope of work.

What is a change order in construction? It is a changes to the original work plans during a project due to the above reasons. New requests, unplanned obstacles and underestimating are some of the reasons that can lead to issuing a change order in a construction project.

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