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Change Order Contract Clause

The document discusses key elements that should be included in a construction contract's change order clause. It outlines topics like the definition of a change order, the process for initiating and approving them, how to address cost and time impacts, and dispute resolution procedures for changes.

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38 views

Change Order Contract Clause

The document discusses key elements that should be included in a construction contract's change order clause. It outlines topics like the definition of a change order, the process for initiating and approving them, how to address cost and time impacts, and dispute resolution procedures for changes.

Uploaded by

Heart Anchor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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KNOW YOUR CONTRACT #13

Change
Order
Clause
parithi
Ilam
01

Definition of Change
Order:
Clearly defines what constitutes a change
order. Specify that it is a written
document that alters the scope,
schedule, or contract price of the project.

parithi
Ilam
02

Initiation of Change
Orders:
Outlines the process for initiating a
change order, including the party
authorized to propose changes and the
circumstances under which changes may
be requested.

parithi
Ilam
03

Approval Authority:

Specifies the party or parties authorized


to approve or reject change orders. This
may involve the owner, architect,
engineer, or other designated
representatives.

parithi
Ilam
04

Documentation
Requirements:
Establishes the documentation required
for a change order request, including a
detailed description of the proposed
changes, drawings, specifications, and
any impact on the project schedule or
cost.

parithi
Ilam
05

Cost and Time Impacts:


Clearly addresses how changes will
impact the contract price and project
schedule. Include a mechanism for
determining additional costs or time
extensions associated with the change.

parithi
Ilam
06

Negotiation Process:

Outlines the process for negotiating the


terms of a change order, including the
submission of cost estimates and the
resolution of any disputes that may arise
during the negotiation.

parithi
Ilam
07

Execution and
Agreement:
Specifies the steps for formalizing the
change order, including the need for
written agreement and signatures from
relevant parties.

parithi
Ilam
08

Notice Requirements:
Establishes notice requirements,
including the timeframe within which
change orders must be submitted and
approved to ensure timely processing.

parithi
Ilam
09

Owner's Right to Order


Changes:
Addresses the owner's right to order
changes and the corresponding
obligation to compensate the contractor
for additional costs or grant time
extensions.

parithi
Ilam
10

Contractor's Obligation
to Perform Changes:
Clarifies the contractor's obligation to
perform the changes specified in an
approved change order, including
compliance with the revised scope of
work.

parithi
Ilam
11

Unilateral Changes by
Owner:
Address the circumstances under which
the owner may unilaterally order changes
without the contractor's agreement,
including the mechanisms for
compensating the contractor for such
changes.

parithi
Ilam
12

Dispute Resolution for


Change Orders:
Specifies the dispute resolution process
in the event that the parties cannot agree
on the terms of a change order, including
mediation, arbitration, or litigation.

parithi
Ilam
13

Limits on Changes:

Sets limits on the extent of changes that


can be made without triggering certain
procedures. For example, small changes
may be addressed informally, while larger
changes require a formal change order
process.

parithi
Ilam
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