Change order basics - Part I

The first in a series report on change orders is presented. Unless they specifically allow the owner to make changes, all construction contracts are changeless contracts. However, most construction contracts do have changes clauses. A wise contractor will know what steps he or she can take to improve collections on change orders. Some obvious ones are: 1. Make sure that you give notice that you consider something to be a "change." 2. Demand a written order to do the change. 3. Negotiate contract terms for prompt payment for changes. 4. Negotiate contract terms that a!- low you to verify that the customer has the money to pay for the change.