How to Make a Construction Change Order in Excel
According to the study conducted by Pramen P. Shrestha et al., change orders are issued when items are removed from the project estimates due to design flaws or insufficient scope. It is not a 100% guarantee that a construction project is impeccable. Defects and alterations will always happen. A change order process is needed in the circumstances like poor building conditions, unrealistic budgets, contract gaps, improbable timeline, unforeseen issues arise, or any instances as long as there are alterations to the original agreement with the contractor and subcontractor. So, in case of the circumstances as mentioned earlier occurs during your construction work, a change order request is essential. Here are some steps to help you out in making a detailed construction change order document through Microsoft Excel.
1. Include Basic Details
Always include the basics. Utilize the standard change order framework in the form. Specify the change order number, dates, client information, name of the construction project, location of the work, new work description, and other essential details you find a construction change order form. You must include the aforementioned information for business transactions.
2. Be Specific
Once you and the client both agree that changes are necessary, you begin making a construction change order. Keep in mind that your construction change order needs to be written clearly. For that reason, be specific as much as possible. It is the job of a general contractor to explain the changes in the work. It is best to assume that the reader of the document is not as familiar with the terms and project, so a detailed construction change order is reasonable.
3. Disclose Reason for Changes
Your construction change order can end up in the hands of lawyers and other people. The reason for the said changes needs to be disclosed in your construction change order. This is necessary for the approval of the sample order. Attaching images, illustrations, reports, descriptions, or other evidence is acceptable. These will support your reasons since the evidence can be a quick and easy way to explain why necessary changes are made. The more details and evidence, the more likely the document will be approved.
4. Write Updates
When changes are made, updates should also be made. The updates must be included in your construction change order. Your changer order must include the updated schedule of work, contract value, and cost of change. Make sure to represent the changes and implications on both schedules providing a side-by-side comparison. When changes are made, costs can soar. It is important that you highlight the changes in the costs of the work in the document to avoid conflicts and misunderstandings in the future.
5. Obtain Signature
Be sure that the document is read and signed by both parties. Obtain the signature of the client for the construction change order to be valid. Affixing signatures will bound both parties to the document. The signature will serve as proof that both parties have deliberated and provided consent.