ipl-logo

Change Order In Construction

1870 Words8 Pages

2.1 Introduction:
“What is a change order? A change order is a written agreement between the owner and the general contractor to change a building or other construction contract. Change orders add to, delete from, or otherwise alter the work set forth in the contract documents at the time that the construction contract was made. As the legal means for changing contracts, change orders are standard in the construction industry. A change can occur at any stage of a construction project. According to Thomas and Napolitano [2] and Ibbs [3], causes for change orders vary greatly, thus making the task of change management difficult for most clients. (Leonard et al).

2.2 Basic of change

“A change is defined in literature as “any deviation from …show more content…

Any modification to a construction contract after a contract award is called a change order.

Contractors will receive the package of the contract in the form of drawings, plans, equipments lists and various other documents. Then, the contractor should be able to calculate the labor cost, material cost, and schedule based on the original package that they received.
Changes can be initiated by all parties in the construction process. All changes, however, must be approved by the owner before implementation. ( CII Publication 6-10 (1990) ) .”

2.3.1 Types of change …show more content…

It also includes the unit price for each item. Where the final price of the project depends on the quantities needed to finish the work.
3- The cost plus contract A contract agreement where the purchaser (the buyer ) pays the full cost of all labor and materials, plus an amount for contractor overhead and profit (which is usually a percentage of the labor and material cost). This type of contract is preferred when there is uncertainty in the scope of work, or when the types of the materials, labor, and equipments are being similarly uncertain in nature.
4- Incentive contracts
Incentive contracts feature compensation which depends on the contracting/engineering performance in accord with an agreed target, schedule, quality, and/or budget.

5- Percentage of construction contract
This type is very common for engineering contracts, where the compensation that is involved in such a contract is based on a percentage of the total cost of construction.

2.5.1 The Human Factor: Productivity

Show More
Related

Taku Safari Inc.: Case Study

486 Words | 2 Pages

Allen v. Taku Safari Inc. [2003] B.C.J. No. 754, [2003] BCSC 516, 122 A.C.W.S (3d) 250, Victoria Registry No. 01 5499 Facts: Andre Allen (plaintiff) entered a contract with Taku Safari Inc. (defendant) in which Taku agreed to provide a guided hunt. Allen was required to travel to Juneau where Taku would provide a connecting flight directly to the hunt site, Inklin. Allen initially paid a deposit but was unable to participate in the hunt due to his flight being cancelled. Taku advised that they would try to accommodate Allen, even two day later, but could not guarantee the connecting flight.

Read More

Unit 8 P4 Business

198 Words | 1 Pages

Change happens in a business for many reasons, such as internal and external pressure. A helpful way of thinking about the factors influencing change is to use the PEST acronym. This highlights four of the main influences of the operation of a business.

Read More

Nt1310 Unit 3 Project Constraints

584 Words | 3 Pages

Cost is the allotted budget required to complete the project. Cost includes material, resources, labor and any item within the project which has a cost associated with it. The three constraints are interdependent and a change to one can affect the one or both of the other constraints. If more requirements are added to the scope of the project, then it is likely for the amount of time and cost to increase as well.

Read More

Case Study: Ron Engineering Vs. Ontario, Supreme Court Of Canada

1043 Words | 5 Pages

Assignment 1 Ron engineering Name: Yangjie Fu Student NO: 040-706-645 Prof. name: ALLAN CUTLER Date: 2-Oct-2014   Content • Ron Engineering vs. Ontario, Supreme Court of Canada, (1981) 1. Complainant’s Position………………………2 2. Defendant’s Position…………………………2 3.

Read More

Pm3110 Unit 3

523 Words | 3 Pages

• Estimate the expenses of Copy and Printing, telephone and postage charges • Confirm is there is a need of insurance for the project supply materials 5.8 Category “Contingency”: What is the contingency cost to include in the project estimation? • Identify the contingency to be considered in the project • Calculate the total contingency 5.9 Category “Taxes and Duties”: What are the taxes and duties charges to be included in the project estimation? • Identify the taxes and duties incurred such as excise duty, VAT/CST etc on works, equipments and services • Calculate the total transport cost 5.10 Category “Bank guaranties”: Is there any bank guaranties to be issued to customer? • Identify the type of bank guarantees to be required • Calculate the total bank guarantee cost 5.11 Category “Penalty”:

Read More

Bsc300 Unit 1 Assignment

454 Words | 2 Pages

It is important when instructing changes that the Project Manager notifies as a compensation event upon the instruction as if not done may leave Employer open to late claims (W1) by the Contractor, because the 'time-bar ' of (8 weeks refer Clause 61.3) does not apply to these types of compensation events, and the Contractor can notify the compensation event any time up until the defects date (Clause 61.7). This is significant for the

Read More

Analysis Of Gun Rights Are About Keeping White Men On Top, By Nathan Wuertenberg

975 Words | 4 Pages

Change have not been made and since

Read More

Analysis Of Mary Ellen Johnson´s The Orphan Train

1055 Words | 5 Pages

The process of altering or adjusting old schemes to fit new information and experiences is

Read More

Rivers And Tides: Movie Analysis

804 Words | 4 Pages

Overall, change is portrayed negatively by the authors. When change is negatively portrayed, there are many options to overcome it. In the story “Metamorphosis” by “Franz Kafka” Gregor

Read More

Models Of Change Management

2130 Words | 9 Pages

Indeed, current change models having certain limitation on implementing changes and current models only helpful when the change known and outcomes are expected. But change is an inevitable process we cont suspect when will new problems arises and all technology related changes need an alternative model for implementing change. So, in this paper I am going to explain process of

Read More

Differences And Similarities Between The Mccarthyism And The Crucible

697 Words | 3 Pages

Many changes happened with the

Read More

Utilitarianism Evaluation Paper

611 Words | 3 Pages

In this part, it will show that who is suffered under the change and who is beneficial through the

Read More

International Mobility Case Study

1003 Words | 5 Pages

SOLVAY GROUP: INTERNATIONAL MOBILITY & MANAGING EXPATRIATES Group F2 Problem Statement: The situation is to develop an international mobility program in order to streamline processes at Solvay which aligns the company’s business goals with individual employees’ needs . External Analysis Factor (Economic, Technological, Cultural) Implications on the problem Political: • Swelling government regulations in Pharmaceutical industryIt was difficult to enter the industry(high entry barrier, not lucrative)Existing players diversifying globally Require additional HR • Movement of HR helps in easy expansion need of an effective international mobility program (take care employees needs like personal, financial, social etc.)

Read More

Lewin's Change Management Model

935 Words | 4 Pages

The post office was experiencing serious economic turmoil and overall poor performance and as a result, the change generators ventured into a process of change management. Change management according to Lewin's Change Management Model states “Change Management is a broad discipline that involves ensuring change is implemented smoothly and with lasting benefits, by considering its wider impact on the organization and people within it. Each change initiative you manage, or encounter will have its own unique set of objectives and activities, all of which must be coordinated.” This model is divided into three (03) phases unfreezing, changing, and freezing. In the case these phases were adapted as Generating change, Implementation and Adoption.

Read More

Candid Wedding Photographer Essay

746 Words | 3 Pages

Changes are that they will be more than willing to work for you. Work out the subtle elements, for example, on the off chance that you will pay them or in the

Read More

More about Change Order In Construction

Related Topics

Open Document