From the course: Construction Change Orders
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The impact of change orders
- [Instructor] Change orders can be very small or very large and have an effect on the overall complexity as well as the price of the project. A project that has many change orders will not only have an impact on the price but the amount of time to complete the project. There will be additional administrative and coordination efforts to implement change order work, like meetings, marking up the drawings, ordering the new material, and instructing your field personnel as to what the changes are. Even tracking and billing change orders takes additional time. There is likely going to be a change to your direct job costs as a result of one or more change orders. For instance, you may have to pay more insurance or bond cost because of a higher contract value, or you may have to pay more rental fees for longer rental durations of equipment, like storage trailers or other rented job site equipment like a backhoe. It's a good practice to keep a running list of all changes or potential changes…
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