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Estimating & Biddingaka: CO

Change Order

In Plain English

A written document that officially changes the project scope, cost, or timeline after the contract is signed.

Definition

A change order is a written agreement between the owner and contractor that modifies the contract scope, price, or schedule after the original contract is executed. Change orders are required for any work that falls outside the original contract scope. They must be signed by both parties to be binding and enforceable.

Example

The owner issued a change order adding $18,000 to install additional electrical outlets discovered during rough-in inspections.

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