A change order is a written document that is used to record changes to an original contract. Sometimes after signing a contract, new needs or new requirements may arise, instead of going and alter the original contract a change order can be done.
How do make a Change order Form?
In management, Change orders are very common. There are two instances where someone might need to use a change order, firstly, a change order can be used if a customer need changes to a contract after the contract have been signed and closed, secondly a change order can if be used if any new rules, new regulations or new legislation is discovered that needs to be adjust to a contract after it is already signed and closed. When you do proper change management, these two situation requires changes to the work scope of the original contract which can have legal consequences, but as long as a change order is created and agreed and signed by both parties, it is then considered a legal binding document to the original contract. An effective change order must includes:
- Project & contact information;
- Dates of change;
- Detail of the change;
- Updated schedule;
- Cost of the change;
- Update contract value;
- Signatures of relevant parties.
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