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A change order is work that is added to or deleted from the original scope of work of a contract. Depending on the magnitude of the change, it may or may not alter the original contract amount and/or completion date. A change order may force a new project to handle significant changes to the current project. [2]
Description of the change. This includes a drawing of the component before and after the change. Generally, these drawings are only of the detail affected by the change. List of documents and departments affected by the change. The most important part of making a change is to see that all pertinent groups are notified and all documents updated.
A Schedule of Values (SOV) is a detailed schedule apportioning the original contract sum and all change orders, among all cost code divisions or portions of the work. The Schedule of Values shall be based on the approved budget or the approved Fixed Price, or GMP, Cost-Plus Contract type as applicable.
An order from the engineering department (to be followed by the production department or vendor) overriding/superseding a detail on the drawing, which gets superseded with revised information. Also called by various other names, such as engineering change order (ECO), engineering change notice (ECN), drawing change notice (DCN), and so on.
Typical Lump Sum Contract Structure. A lump sum contract in construction is one type of construction contract, sometimes referred to as stipulated-sum, where a single price is quoted for an entire project based on plans and specifications and covers the entire project and the owner knows exactly how much the work will cost in advance. [1]
Whether a change is a cardinal change may, however, still be relevant to whether the contractor can unilaterally stop work pending resolution of a dispute, [9] and the measure of damages that may be recovered. As a quid pro quo for the government's unilateral right to order changes, the Changes clause gives the contractor a right to ...
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