Definition - What does Change Order mean?
Change order is a modification, addition or deletion of the original contract authorized by the owner to a contractor. To be legally implemented, the change order should be within the scope of the 'Changes' clause of the original contract. The change order should be recommended by an engineer, authorized by the owner and acknowledged by the contractor.
Trenchless construction methods may sometimes require the engineer to recommend a change in the method or sometimes to call off a project if unfavorable and unforeseen geological conditions are encountered.
Trenchlesspedia explains Change Order
A typical change order will consist of some basic features such as a revised scope of work, cost estimation for the additional work, modifications made to the original contract as a result of the addition or deletion of a work and consent signatures from owner and contractor. Before a change order is executed where there is significant increase in the contract price, the owner should provide the contractor with adequate evidence of his capability to meet the financial demands. The change order may also require adjustments to be made in the contract time mentioned in the original contract.
The contractor should ensure that he takes full note of the changes made via the change order to prevent financial losses by missing out on billing according to the change order.