Перевод «change order» на русский
The construction manager’s cost allocation to various budget items (contingency, allowance) can be tracked based on the monthly change order log.
Выделение руководителем строительства средств на оплату расходов по различным бюджетным статьям (резерв, ассигнования по установленным нормативам) может отслеживаться на основе записей помесячного учета распоряжений о внесении изменений.
The Board previously recommended that the processing time and backlogs in the change order approvals process should be reduced.
Ранее Комиссия рекомендовала сократить продолжительность процесса рассмотрения и утверждения распоряжений о внесении изменений и уменьшить отставание в этом процессе.
Decisions sometimes have to be taken quickly during construction and may require a contractual amendment or change order, with significant extra costs.
На этапе строительства зачастую приходится оперативно принимать соответствующие решения, в результате которых может возникнуть необходимость внесения изменений в положения контрактов или применения процедуры внесения изменений, что повлечет за собой существенные дополнительные расходы.
It should be recognized that OIOS will not examine every contractual amendment or change order as a matter of routine audit procedure; this presented the Department of Management with the following alternatives in relation to internal control:
Следует признать, что УСВН не будет заниматься рассмотрением каждой поправки к контракту или процедуры внесения изменений в рамках обычной ревизионной процедуры, и в этой связи у Департамента по вопросам управления есть следующие альтернативные варианты, касающиеся обеспечения внутреннего контроля:
Administrators can create, edit, move, rename, hide or show, change order of particular pages or whole site sections, adjust navigation.
Администраторы могут создавать, редактировать, перемещать, переименовывать, изменять порядок отдельных страниц и целых разделов, управлять навигацией.
For some reason Apple decided to complicate the situation, and was forbidden to add or remove buttons while in the control, and change order.
По какой-то причине Apple решила усложнить ситуацию, и запретила добавлять или удалять кнопки находясь в Пункте управления, а также изменять порядок.
Although the reason categories were applied appropriately, they are broad, are not easily compiled for reporting purposes and do not track important change order details.
Хотя категории оснований для представления распоряжений применялись должным образом, они носят широкий характер, не очень легко подходят для целей отчетности и не позволяют отслеживать существенную подробную информацию относительно распоряжений о внесении изменений.
While noting the improvements by the Administration, the Board considers more can be done to speed up the entire change order process.
Отмечая улучшения со стороны администрации, Комиссия считает, что многое еще можно сделать для ускорения всего процесса утверждения распоряжений о внесении изменений.
In particular, certain change order items that will need to be addressed during the subproject close-out, such as acceleration costs, are not easily identifiable.
В частности, не очень легко вычленить определенные позиции распоряжений о внесении изменений, которые необходимо проанализировать на этапе завершения работ по субпроекту, такие как издержки, вызванные ускорением хода работ.
(b) A Secretariat change order included dry-wall trade contractor costs of $650,000.
Ь) одно из распоряжений о внесении изменений в контракт на строительные работы в здании Секретариата предусматривало выплату субподрядчику за возведение сухой кладки 650000 долл. США.
The Administration agreed with the Board’s reiterated recommendation that the Office of the Capital Master Plan significantly reduce the processing time and backlogs in the change order approvals process.
Администрация согласилась с ранее вынесенной рекомендацией Комиссии о том, чтобы Управление Генерального плана капитального ремонта существенно сократило время обработки данных и задержки с рассмотрением и утверждением распоряжений о внесении изменений.
Change order for construction contracts
In project management, a change order (or variation order) is a component of the change management process in which changes in the scope of work (or project brief) agreed to by the client, contractor and architect are implemented.
A change order is work that is added to or deleted from the original scope of work of a contract, which alters the original contract amount and/or completion date. A change order may force a new project to handle significant changes to the current project.
Change orders are common to most projects, and very common on large projects. After the original scope (or contract) is formed, complete with the total price to be paid and the specific work to be completed, a client may decide that the original plans do not best represent their definition for the finished project. Accordingly, the client will suggest an alternate approach.
Common causes for change orders to be created are:
- The project’swork was incorrectly estimated.
- The client or project team discover obstacles or possible efficiencies that require them to deviate from the original plan.
- The client or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project
- During the course of the project, additional features or options are perceived and requested.
- The contractor looks for work items to add to the original scope of work at a later time in order to achieve the lowest possible base bidprice, but then add work items and fee back on once they have been appointed. This is an exploitative practice.
A project manager then typically generates a change order that describes the new work to be done (or not done in some cases), and the price to be paid for this new work. Once this change order is submitted and approved it generally serves to alter the original contract such that the change order now becomes part of the contract.
[edit] Related articles on Designing Buildings Wiki
- Architect’s instruction.
- Budget.
- Completion date.
- Construction contract.
- Cost overruns.
- Henry Boot Construction Ltd v Alstom Combined Cycles.
- How to prepare a claim for an extension of time.
- Move management.
- Payment for extra work.
- Project manager.
- Project team.
- RFx.
- Variations.
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How Change Orders Work in Construction
Completing a change order correctly minimizes risk, improves the chances of approval, and helps contractors get paid faster. The article contains information on how to fill out a change form, key details to include, and pitfalls to avoid during the change order process.
Table of contents
What is a change order?
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. The contract should provide specific guidelines on how to manage and process the change order.
Change orders will not only alter the project scope and schedule, but they can also affect a contractor’s liability and put their payment at risk.
Changing the scope of work
All construction projects go through changes. Once you’re on the job, the project scope and site conditions often turn out different than you expected when you signed the contract.
Sometimes the project owner will ask you to do more or less work. Other times, you realize that the site conditions won’t allow you to finish the work for the price you agreed upon. Anytime a change happens to the scope of work in your contract, you’ll want to request a change order — and get the property owner’s signature on it.
A change order isn’t the only way to change the contract scope. A change directive, also known as a work request directive, is a top-down change order without the contractor’s input.
An Architect’s Supplemental Instruction (ASI) may be used if the change is immaterial, meaning the schedule or price won’t change based on the alteration.
Change orders aren’t only used when an alteration is required — they can also be used to offer suggestions. The value engineering process on some federal projects, for example, includes a provision for change proposals known as VECPs, where contractors are invited to suggest changes that reduce costs without impacting performance.
6 things every change order should include
The contract may spell out the specific change order form a contractor should use, and how to submit it. Common forms include the AIA G701 Change Order and ConsensusDocs 202/795. Unless the contract lists a specific form to use, you can generally use any form.
If the contract doesn’t specify the change order to use, a contractor may choose to write one. You may create it in a spreadsheet or word processor, or even write one by hand. What’s most important is that it contains the key pieces of information that can help a property owner or architect approve the change.
1. Project and contact information
The change order form should include:
The contract number
The owner’s name and contact information
The general contractor or architect’s name and contact information
The project name and address
The contractor’s name and contact information
The change order number (how many orders have you submitted so far?)
This information is important to tie the change to a specific contract, especially when doing business on a large commercial project or with the government.
2. Dates of the change
The change order form should include the date that you complete the change order.
Depending on the contract, additional dates may be helpful, such as the date that you first gave notice of the change, or the date when you submitted the change order for approval.
In general, construction contracts will require parties to provide notice of any changes to the scope of work within a certain number of days. Failing to inform or follow the right notification process can cause a change order to be rejected or payment withheld. The typical timeframe to notify the project owner or the owner’s rep of a change is 5–10 days, but this changes from contract to contract.
When a contractor fails to follow the process, then the change order might proceed — but the contractor might not be paid even when the work gets completed. Read your construction contract thoroughly to understand the process of submitting a change order.
3. Details of the work
This is where the contractor will describe the work changes in detail. It may be extra work that they will do, or a description of the work that is no longer required. The contractor should provide as much detail in this section as possible, assuming that the reader isn’t as familiar with the project as they are.
The actual reason triggering the change condition is important to prove the case for approval. These conditions can be the result of site conditions, design, scope changes, law or regulation changes, strikes, terrorism, vandalism, weather, or a “force majeure” event. A force majeure event is one caused by external uncontrolled conditions that cannot be avoided by anyone on the project.
The contractor should be as specific as possible. They may attach written descriptions, photos, drawings, or any other evidence that can clearly demonstrate the reason for the change.
When writing the change order, keep in mind that it could end up in the hands of a lawyer or individuals that do not know much about the project. Including as much detail as you can will protect your rights down the road.
4. Updated schedule
The change order form must include the new schedule that results from the change. The contractor should include the number of days it will take to complete the change, and the new date that they will finish.
In some cases, a project owner may ask the contractor to provide a detailed analysis of the impact the change has on the overall critical path of the project schedule. Typically, when the change does not impact the project’s critical path, the contractor will not be allowed to get credit for extra days or a time extension. Be sure to depict the changes and consequences showing a side-by-side comparison on both schedules.
5. Cost of the change
The change order form needs to include the resulting cost of the amendment. This includes positive and negative charges, overhead, profits, tax, insurance, and any other extra costs associated with the change. The change order form will follow the same format as the contract.
If it’s a unit price, make sure to provide a detailed unitized breakdown for all costs, including labor and material.
6. Updated contract value
Make sure all change orders reflected an updated version of the contract’s value. The change order form should include:
The original contract value
The value of all past approved change orders (if any)
The cost of the current change order
The new proposed contract value (including all of the change orders, positive or negative)
Submitting a change order
Once a change order is completed, it’s signed and sent to the owner or owner’s rep for the construction project. The owner will evaluate the change and may ask for additional information. The contract should specify how much time the project owner has to accept, reject, or request additional documents supporting the change request.
If the project owner signs it and returns it to the contractor, the work is approved and the contractor can begin.
Match the payment application
The change order must follow a very similar format as the application for payment or schedule of values so the contracting officer or the project owner can compare against the original contract value.
In a lump sum contract, the unit must follow the same standard as the ones in the original contract. Be aware that if you request a change, the project owner can decide whether this is something that they want you to do — or if they will hire someone else. Work should never start without a signature under the assumption that the property owner will approve a change later.
In some scenarios, the project owner will provide a written directive instructing the contractor to continue the work. In those cases, when allowed by the contract, the contractor can claim reimbursement for their costs.
Get it in writing — and save it
I have talked to different contractors that prefer to go ahead with the work without having a change order approved. If you’re a contractor, never do any work if you don’t have proof of approval. If changes to the contract arise, get it in writing and ask the property owner to sign it. Working without approval increases your liability and the risk of non-payment.
Once you have approval, save it with the rest of the project documents. Every contractor should keep a copy of every document they provide to the project owner, and save it in case disputes arise later. Change orders are no exception. Government projects will require that you maintain documents for anywhere from 3–10 years. Other document deadlines may not expire for 12 years, depending on the current law and requirements where the project is being built. Create a document retention policy, and follow it for every construction project.
What Is a Construction Change Order? The Process, Explained
Anyone who’s worked in construction long enough knows that the only constant in this business is change. Those blueprints? That line item? Your precisely calculated estimates on how much time, money, and energy a job will cost you? All of it can go out the window at a moment’s notice.
The phrase “ change order ” can evoke a wide range of emotional responses. If you’re a contractor, reading those two words just now may have sent a trickle of dread down your spine. If you’re a project owner or client, a change order may be a welcome sight, a magical key phrase that unlocks the most desired outcomes for your building project. Then again, it’s just as likely that the responses are reversed.
However you feel about them, change orders are a simple fact of life in the world of construction. In fact, 35% of all construction projects will experience at least one major change order before completion. Rather than fearing and trying to avoid them, contractors would be wise to learn about how change orders work so as to be better prepared the next time one inevitably swims into view.
Jump Ahead:
- What Is a Construction Change Order?
- Types of Construction Change Orders
- Construction Change Directives
- Cardinal Change Doctrine
- How Do You Write a Construction Change Order? What to Include in a Change Order?
- What Is an Acceptable Change Order Percentage?
What is a change order? Change Order Meaning
A change order is a document that re-defines the scope, budget, and timeline of a previously agreed upon construction job.
In a typical construction contract, two parties–the contractor and client–agree in writing to a set of parameters that define what a project is, how much it will cost , and how long it will take to complete.
But plans can change for any number of reasons, and when they do, it’s time to issue a change order. Commonly provided for within a specific clause of most construction contracts, a change order supplies a clean, efficient, and legally secure procedure for both parties to identify and implement changes to a project.
It’s highly preferable for legal reasons that the agreement surrounding a change order be cemented in writing, though this doesn’t always occur in practice.
This next part is important: A change order is only valid if both parties agree to it .
We’ll dive deeper into the legal waters in a moment. For now, let’s take a closer look at why a change order might be issued in the first place.
Types of Construction Change Orders
Build.com lists four primary types of construction change orders that may arise :
- Lump Sum Change Order , which they describe as “when the change in the scope of work can be quantified with a firm price , resulting in an overall increase in the expense of the project.”
- Zero Cost Change Order , by contrast, doesn’t affect the contracted price, and is typically used to ensure scope changes are documented (despite those changes not affecting the contract value).
- Time & Material Change Order (aka T&M) , a change order where the proposed cost cannot be estimated, where contractors are expected to “track their time spent working on the change, as well as any costs associated with needed materials or equipment.”
- Unitary Cost , finally, represents instances where a contractor will negotiate a change upfront (e.g., before any change-related work begins). Unitary cost, they explain, is «based on additional scope of work that can be defined by specific measurement units.”
Change Order Examples: Common reasons for change orders
Construction is a dynamic and kinetic business. Having an agreed upon plan is essential, but it’s equally important for everyone involved to remain flexible in the face of ever shifting circumstances.
There are many reasons why a change order might need to be issued during a construction project’s lifecycle. Here are just a few:
- Increase in prices : A lot of time can pass between when a project bid is accepted and when work crews break ground. Within that window, the quoted cost of materials and equipment can fluctuate wildly, as the ongoing COVID-19 pandemic continues to teach us. Though situation dependent, it is possible for contractors to request change orders that address increased market prices via a contractual mechanism called a material price escalation clause .
- Unknown unknowns : Even the best laid plans of mice and men can go astray. Maybe the terrain has changed since the original site survey. Maybe a new building regulation just hit the books. Maybe new data has come to light about toxins in the local environment or the viability of a particular construction material. There are many unforeseeable factors that can cause a change in the timeline, budget, or scope of a project.
- Human error : People make mistakes. A stray decimal point here or a misdrawn schematic there is all it takes to delay and derail a construction project, requiring a timely issuance of a change order to correct course.
- Design changes : People also change their minds. Clients can add and subtract features to their project even when construction is well underway. Whether it’s the sudden addition of skylights or a full-blown gear shift toward achieving LEED certification, contractors should be prepared to accommodate adjustments–within reason, of course.
- Acts of God : There’s no greater disruptor than Mother Nature. In the face of increased natural disasters and extreme weather events in the age of climate change, construction timelines and budgets are like leaves on the wind.
Change orders and the law: What happens if there is a dispute?
While it’s true that a change order is only official when both parties agree to it, it’s also true that the story doesn’t end there.
Ideally both parties are able to sort out their differences and reach some sort of agreement in the event of a dispute over a change order. If, however, the impasse proves irreconcilable, both the client and the contractor have alternate paths they can pursue should they choose to press the matter.
Construction Change Directives vs Change Order
Let’s start with the client’s side.
Suppose a client has requested a major design change: Instead of lumber frame construction, they now want their building to be built entirely of stone masonry.
The client submits a change order, but the contractor rejects it. If the client is determined to get their way, they can unilaterally compel the contractor to accept the change order with what’s called a “ construction change directive,” or CCD.
According to the American Bar Association , a construction change directive is a legally binding mechanism that empowers clients to command contractors to complete a change order even without the contractor’s consent .
In other words, our contractor now has to build the building out of stone, even if they don’t want to.
That being said, the issuance of a CCD also isn’t the end of the story.
Cardinal Change Doctrine
Now let’s take a look at the flip side.
From the contractor’s perspective, the change order and subsequent CCD requesting a shift to stone masonry was drastic in a number of ways. For starters, it didn’t alter the project’s deadline or budget, even though stone is significantly more expensive than wood and may take weeks to arrive. Another problem is that the contractor doesn’t specialize in stone masonry, and would therefore have to outsource an overwhelming majority of the work to a sub-contractor who does. What’s more, this is only the latest in a string of major last-minute change orders from the client.
If a contractor feels that a change order or a series of change orders falls outside the general scope of the original contract, they may invoke the “ cardinal-change doctrine .”
In short, the cardinal-change doctrine is a procedure by which a contractor can seek to terminate a construction contract.
Here’s how the American Bar Association describes it:
“Simply put, the cardinal change doctrine holds that some changes in the work so fundamentally alter the original obligation undertaken by the contractor that it would be a breach of contract by the owner if the owner insisted the contractor perform the work.”
Generally speaking, many construction contracts allow for a broad range of changes to the specific scope of a project. However, if there have been numerous drastic changes that fall outside the “general scope” of a project, it may be time to talk to a lawyer about putting the cardinal-change doctrine into play.
Even this, however, doesn’t signal a clear-cut resolution to a change order dispute, as it’s up to the courts to evaluate each invocation of the cardinal-change doctrine on a case-by-case basis.
Construction Change Order Process : What to I nclude in a C hange O rder ?
As Build.com notes, the c onstruction change order process typically follows six steps :
- The contract is signed.
- An issue is raised (such as material procurement issues, regulatory changes, owner-initiated changes, design errors, poor site conditions, etc.)
- A change is proposed.
- The process is received and reviewed, typically known as a request for information (RFI)
- The change is agreed upon.
- The original contract is amended.
How Do You Write a Construction Change Order ? What to Include in a Change Order?
While disputes can and will occur, the whole point of a change order is to create a smooth and efficient process for altering a project that benefits all parties involved.
With this in mind, let’s take a quick look at how to properly create a change order.
( Pro-tip : Always put your change orders in writing. While many verbal contracts are in fact legally binding , it’s best practice to have written records that you can fall back on as hard evidence in the event of a dispute.)
If you’re writing your own change order from scratch, make sure it includes the following:
- The name and location of the project.
- The names and contact information of the contractor and the client.
- A clear, precise, and complete description of what changes to that original project are being requested, and why.
- A thorough and itemized account of how the proposed changes will affect the project’s
timeline, budget, and schedule. - The signatures of each relevant party.
- The date the change order is adopted.
If you want to be absolutely sure you’re change order is filled out correctly, consider using a template, like this one from the American Institute of Architecture.
How to respond to change orders
Knowing how to handle a change order is essential. Here are a few tips for how to respond when the next change order arrives:
- Review the Contract : When you receive a change order, the first thing you should always do is make sure you have a clear understanding of the original contract. What are the exact changes to the original work requirements? How does the change order affect the project’s budget and timeline? Will this particular change order cause problems downstream that require deeper consideration before taking action? All of these are essential questions that can be answered by simply reviewing the existing contract.
- Plan for Change Orders : Ideally, change orders should never catch you flatfooted. Having a step-by-step plan for responding to change orders is a great way to remove a lot of the fear and anxiety surrounding them. Instead of reacting in the heat of the moment, set aside some time to map the change order process from beginning to end, identifying important junctures and key resources like change order templates along the way. Each individual situation is different, but having a solid plan in advance can help see you through even the rockiest of circumstances.
- Communicate : There is nothing more important than clear, cordial, and open communication. This is true in any relationship, be it personal or business. In construction, failure to communicate will put you in the fast lane to making the change order process more confused and agonizing for everyone involved. To ensure that a change order is understood and properly executed from beginning to end, it’s critical that everyone—from the client and contractor on down to all the related work teams—are on the same page every step of the way.
- Document Everything : If you want to know where you’re going, you need to know where you’ve been. While also important for legal reasons, keeping meticulous written records is the best way to capture how the contract has evolved, what information has been shared with which parties, and what work has been completed up to that point.
- Take Swift Action : Once a change order has been received, reviewed, and agreed to, it’s always a good idea to act on it as soon as possible. The last thing you want is a change order amending a previous change order because the window of opportunity has closed. Plus, timely action is a signal of good will that can keep relations on an even keel.
What Is an Acceptable Change Order Percentage?
One way is to calculate costs is to remember the following equation :
Overhead % ÷ Direct Cost % = Markup %
Smartsheet, a project and work management platform, offers some guidelines for:
- Pricing models for forward and backward construction change orders
- Offers some best practices
Tips for Managing C hange O rders
As we said up top, change orders are inevitable.
And to be clear : We don’t want to make a change order to sound bad. At the end of the day, many contractors rely on change orders to improve their margins.
That said, there are things that contractors can do to manage certain change orders and ensure everyone involved is whole .
- Expect the Unexpected : You may not be able to control tectonic market shifts, but there’s no rules against doing your best to anticipate and prepare for them. A savvy construction project manager is able to conduct construction forecasting in their sleep, deftly sidestepping change orders related to fluctuating materials and commodity prices.
- Conduct a Thorough Survey : Planning a building project starts with the land. The odds of a change order in your future increase exponentially when you don’t have a deep understanding of the environment a structure will be situated within. To achieve that kind of deep understanding from the get-go, it’s essential to utilize a highly-skilled surveyor, preferably one who’s well versed in cutting-edge technologies like LiDAR and Building Information Modeling (BIM).
- Visualize and communicate: Speaking of, there’s no better way to visualize and communicate about a building project than BIM . A type of software that allows users to create and interact with highly-immersive 3D simulations of built structures, BIM is an excellent tool for making sure all the various stakeholders and departments are always on the same page as a project unfolds—potentially preventing the need for unforeseen change orders.
- Keep Track of Your Assets : The loss of materials, tools, and equipment due to theft or inventory management is a problem that costs the construction industry millions of dollars every year and leads to severe delays in project timelines. An easy way to prevent change orders related to unforeseen asset displacement is to use Milwaukee Tool’s free ONE-KEY™ inventory management app . With One-Key, you can log and track the physical locations of every tool in your inventory. Even non-One-Key compatible tools and items can be monitored and inventoried by affixing them with one of our Bluetooth Tracking Tag .
- Construction Job Costing : Furthermore, for those losing sight into what goes into their overhead costs related to tool and equipment inventory, experiencing tighter and tighter profit margins, and are spending hours and hours of manual labor calculating costs for individual projects, Construction Job Costing allows you to assign rental rates for equipment in your inventory and remain in the know about costs that are accrued and billed to projects. One-Key’s New Job Costing feature helps you gain visibility into variable costs of your projects and preserve your profit margins.
- Increase Safety : As one of the most dangerous occupations, it’s essential that we throw every resource we have toward the protection of construction workers’ safety, health, and well-being. One of the many reasons why is that worker injuries can cause massive delays in building projects. If you want to avoid timeline related change orders, follow the seven key performance indicators of safety and hire a safety manager to create clear safety protocols and establish a culture of safety within the workplace.
- Hone Your Process : Change orders caused by mistakes can be ironed out by reducing waste and opportunities for error within your workflow by adopting lean construction techniques.
Bottom Line
Change orders are a part of life in construction. There are sensible things you can do to prevent them, but it’s impossible to avoid them entirely. Contractors can prepare for change orders by getting familiar with the different clauses built-in to construction contracts and knowing what legal options are available in the event of a dispute. If the need for a change order arises, the best thing for all parties is to make sure everything is put down in clear and precise writing.
At the end of the day, change orders are just another tool, and like any tool, the trick to demystifying change orders is to learn when and how to use them.