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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]
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 engineering change order (ECO), also called an engineering change notice (ECN), engineering change (EC), or engineering release notice(ERN), is an artifact used to implement changes to components or end products. The ECO is utilized to control and coordinate changes to product designs that evolve over time.
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]
DBB with Construction Management is a modified version of the Design-bid-build approach With partially completed contract documents, an owner will hire a construction manager to act as an agent. As substantial portions of the documents are completed, the construction manager will solicit bids from suitable subcontractors.
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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