About the Construction Change Order Builder
Scope deviations are the leading cause of margin erosion and legal disputes in commercial construction. A construction change order builder systematically formats requests for additional work, capturing direct material, labor, and equipment costs. By automatically applying agreed-upon overhead and profit markups, the tool generates a professional document that clarifies schedule impacts and establishes a new, legally binding contract total.
How it works
- Describe the change in scope and the reason for the deviation from the original contract.
- Itemize the estimated costs for new labor, materials, equipment, and subcontractor fees.
- Apply the contractually allowed percentages for overhead, profit, and tax markups.
- Input any required extra schedule days, review the revised contract total, and export the document for client signature.
Frequently asked questions
Can a contractor charge overhead and profit (O&P) on a change order?
Yes, standard contracts dictate allowable O&P markup percentages for change orders, commonly ranging from 10% to 15% to cover administrative burdens and risk.
What is a Construction Change Directive (CCD)?
A CCD is issued by the owner or architect forcing the contractor to proceed with changes before a final price or time adjustment is agreed upon, usually to prevent project delays.
Should schedule impacts be included in every change order?
Yes. Even if a change has zero cost, if it requires additional days to complete, the contractor must explicitly claim those days on the change order to avoid future liquidated damages.
What happens if a change order is performed without written approval?
Proceeding with out-of-scope work without a signed change order places the financial risk entirely on the contractor. The owner may legally refuse to pay for undocumented changes.
References
- AIA Document G701 - Change Order Standard
- ConsensusDocs 200 - General Conditions