What’s a Change Order?

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A change order is a process used by many companies, particularly those that provide services to customers. By using it, the company and the customer can make changes to an original commercial contract. The process is often used in the construction business.

When a construction company first places a bid on a project, it details the services and materials to be provided. The original contract also outlines the project design and projected end result. If problems arise during the build process or if the client changes his or her mind about what he or she wants done, a Change Request form must be completed. The form details the new plan, including services, materials and designs, which the client and the company have mutually agreed to. It then becomes the valid contract by which the client and the construction company must legally fulfill.

The Request for Change form can also be used in other service sectors. Writers, artists and computer programmers, for example, can use this form to change the parameters of an agreed project.

Many business software programs include change order options. They are convenient for business as the software programs automatically change the contract according to the contract. In the case of a construction company, the function makes calculations regarding changes in required supplies and project cost. These software programs create easy-to-read tables and reports that can be viewed by both the construction company and the customer to ensure details are correct and complete.

By using commercial software with a change order option, a company can better track changes made to an original contract. In addition, it promotes better communication between the client and the company, which ensures that both parties are aware of expectations and results.

Asset Smart.

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