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Change order
A change order clause in a contract outlines the procedures for making amendments to the original agreement, including alterations to scope, cost, or timeline. It specifies how changes should be documented, authorized, and implemented to ensure clear communication and mutual consent between the parties involved.
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6 Change order examples
- Description
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change. Initials: /s/ SS Contractor /s/ DC Owner
- Description
Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order. Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect. This Change Order is executed by each of the Parties’ duly authorized representatives.
- Description
Pursuant to Article 6.1 of the Agreement (Change Orders Requested by Owner), Parties agree this Change Order includes the East Jetty Cooldown Line & Simultaneous Ship Loading Modifications requested by Owner to include in Contractor’s Scope of Work as detailed in Exhibit 4 of this Change Order. 2. The summary cost breakdown for the total Scope of Work of this Change Order is detailed in Exhibit 1 of this Change Order. 3. The detailed cost breakdown for the Scope of Work of this Change Order is provided in Exhibit 3 of this Change Order. 4. Schedules C-1 and C-3 (Milestone Payment Schedules) of Attachment C of the Agreement will be amended by including the Milestones listed in Exhibit 2 of this Change Order.
- Description
This Change Order includes the costs during the 2nd Quarter of 2019, and excludes all costs, cost impacts, or effects of the change associated with these trends beyond these dates. Any subsequent costs, cost impacts, or effects of the change associated with these trends beyond these dates will be assessed on a quarterly basis and included in separate, future Change Order(s).
- Description
CHANGE ORDER FORM Modifications to Schedule Bonus Language PROJECT NAME: Sabine Pass LNG Stage 4 Liquefaction Facility OWNER: Sabine Pass Liquefaction, LLC CONTRACTOR: Bechtel Oil, Gas and Chemicals, Inc. DATE OF AGREEMENT: November 7, 2018 CHANGE ORDER NUMBER: CO-00015 DATE OF CHANGE ORDER: February 10, 2020
- Description
By way of this Change Order, the Performance and Attendance Bonus Provisional Sum Provisional Sum in Section 2.2 of Schedule EE-3 of Attachment EE of the Agreement shall be decreased by Five Million U.S. Dollars (U.S. $5,000,000), and transferred to the Performance and Attendance Bonus Provisional Sum in Section 2.2 of Schedule EE-2 of Attachment EE of the Agreement, and the new value of the Aggregate Performance and Attendance Bonus Provisional Sum is Forty-Two Million U.S. Dollars (U.S. $42,000,000).
What is a Change Order?
A Change Order is a formal document used in project management to record and authorize amendments to a contract or agreement. These changes can involve modifications to the scope of work, timelines, deliverables, or pricing. Change orders are typically necessary when unexpected challenges arise, new requirements are identified, or adjustments need to be made to the original plan due to evolving circumstances.
When Should I Use a Change Order?
A Change Order should be used in the following scenarios:
- Scope Modifications: When there is a need to add, remove, or alter any part of the project scope that was not initially included in the original contract.
- Budget Adjustments: If the cost of the project needs revision due to changes in labor, materials, or additional work required.
- Timeline Changes: When the project schedule needs adjustments due to unforeseen delays or acceleration requests.
- Regulatory Compliance: If there are new legal or compliance requirements that necessitate changes in the project’s execution.
How Do I Write a Change Order?
Writing a Change Order involves several key steps:
- Identify the Need: Clearly state the reason for the change and its impact on the project.
- Describe the Change: Provide a detailed description of the change, including the specific tasks or deliverables involved.
- Assess Costs and Timelines: Include any adjustments to the project’s budget and schedule resulting from the change.
- Obtain Approvals: Ensure that the change order is reviewed and approved by all relevant stakeholders, including clients and contractors.
- Formalize the Document: Use a standard change order form that includes project details, signatures, and dates to finalize the agreement.
Example: “The client requested an additional feature that was not in the original scope, which will extend the project timeline by two weeks and increase the cost by $5,000. The change order includes a detailed description of the feature, updated timelines, and revised budget.”
Which Contracts Typically Contain Change Orders?
Change orders are commonly found in the following types of contracts:
- Construction Contracts: Change orders are frequently used to handle changes in construction projects due to scope modifications or unforeseen site conditions.
- Software Development Agreements: In software projects, change orders address adjustments in system features, functions, or integration requirements.
- Engineering Contracts: Engineering projects often require change orders to adapt to new engineering standards or technology advancements.
- Maintenance Contracts: These contracts might use change orders when the scope of maintenance services needs to be expanded or altered.
Having a clear, structured process for managing change orders is vital to maintaining project management discipline and ensuring that all changes are documented, authorized, and reflected in updated project plans.
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