What Is A Change Order?
Change notice, variation order, and change orders are synonyms for a document that acts as a binding agreement if a dispute arises regarding quality, labor, timeline, or materials. To clarify, it is the formal process in the industry to make changes to the original contract and promotes transparency throughout the entire project. But how do you create a change order?
Proposed Change vs. Change Order
When a project has changes, the first steps to gaining approval through a change order are informing all stakeholders of the changes. Prior to issuing a change order, a draft file outlining the proposed changes is shared with stakeholders, which is known as a proposed change. This provides a formal chance for negotiations between the stakeholders of the project regarding the proposed changes. To clarify, contemplated change notice and contemplated change order are synonyms for proposed change. In ContractComplete, this process does not require a formal signature process. Any stakeholder can edit proposed changes in real-time.
What Is A Contemplated Change Notice (CCN)?
A Contemplated Change Notice is a file from the owner of the project to the contractor indicating a potential change. Importantly, it requests information from the contractor regarding the changes including how much more time, labor, and materials are required and how much it will cost. Therefore, until the contractor returns this information and it is approved by the owner, the change is not guaranteed.
Steps To Create A Change Order With ContractComplete:
- Navigate to the Change Orders Tab
- Create a proposed change by clicking “Propose a Change”
- Name your proposed change
- Click on “Line Items” tab to add in changes
- Edit quantity and price of the items on the bottom
- Add any new items in via the green + button on the top left
- Add the cost for any new items
- Provisional Items: look up via the icon on the left
- Request a Quote from the Contractor (click save, then yes. The system will automatically email the contractor requesting them to log in and provide pricing information)
- Select the proposed changes you would like to include and click the create change order button
- Name the change order, select signees, and click accept
- Review the draft and make any required changes
- Click approve to send to signees
Once you have created a change order, our software makes it simple to receive signatures from all parties involved. Firstly, click save and the system will automatically forward the document to all stakeholders. In addition, whether or not signees are ContractComplete users, owners can send the file through the system and will be able to easily sign the document. The creator then gets a preview where they are able to add additional signees, view the document in live time, and add documents before officially sending it out and requesting signatures.