Why is establishing the Change Order Process early considered essential for effective contract management?
Answer
It specifies how changes are requested, priced, approved, and incorporated, preventing scope creep.
Since changes to scope or schedule are common, having a formal process for requesting, pricing, and approving modifications in writing upfront prevents uncontrolled scope creep from negatively impacting finances.
#Videos
Understand Construction Contracts In Minutes - YouTube
Related Questions
What primary role does a construction contract serve for an entire project?Why are verbal construction agreements generally avoided despite technically forming a contract?What essential information must the Scope Definition clearly define?In the context of payment terms, what does retainage represent?Which two specific completion dates must the Project Timeline section of the contract establish?Why is establishing the Change Order Process early considered essential for effective contract management?What is a typical tiered approach for Dispute Resolution outlined in most construction agreements?What is the function of Drawings and Specifications within the overall contract documents package?In a Lump Sum (Fixed Price) contract, who bears the majority of the financial risk for unforeseen site conditions?What is the primary risk profile for the owner when utilizing a Cost Plus (Time & Materials) payment model?What practical administrative tool is suggested to immediately authorize verbal instructions that alter the work scope?