KNOW YOUR CONTRACT #13

Change
Order
Clause
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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.

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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.

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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.

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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.

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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.

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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.

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07

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

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08

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

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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.

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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.

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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.

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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.

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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.

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