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Mike: There we go, all right. All right, number nine. So this one should also be pretty straightforward. This is a very simple version of this question. You could imagine, very complicated versions of this question. Question number nine, "The change order always describes the changes to what three aspects of the contract?" So the first thing to say there is, well that's interesting. It's already telling us in the question that change orders are part of the contract, which they are.
When we say a change order, what we're saying is, there's a change to the contract. When we talk about a contract, especially the contract between the owner and the contractor, the general contractor, there's this great term that I love, which is called "The essence of the contract." It's a legal term. And what it's referring to is, that there are lots of parts of a contract, there's a whole range of different things. But the essence of the contract, the meaning, the core of the contract is, when an owner hires a GC to do the project, they hire them to build a specific scope of work, and they give a very particular fee to do that, and they say how long it's going to take. That's the essence of the contract.
Then there's going to be a whole bunch of other things about, you're going to relate to this, you're going to submit payment requests every month, or every two months, or every week, you're going to put the Porta-Johns on the alley side, not on the street front side. There's a million other things that might be in that contract, but the essence of the contract is, a particular scope of work. That scope of work has been identified through the architect's contract documents, and it's labeled and listed in their contract. The GC is going to put a particular fee, so that's listed. And they're going to say, "This'll take six months," or, "This'll take nine months," or, "This'll take a year and a half."
So that's listed. That's the essence of the contract. Well a change order, just like any other part of the contract, it's still the essence of the contract. So when something changes, when the design needs to change in the middle of the construction, the first thing is obviously, how much is this going to change from a dollar standpoint? The second thing is, what's the scope difference? And it might be giant, "Okay, we're no longer going to be able to build the south wing to the project because it turns out I didn't win Powerball. I was sure I was going to win it, but I didn't, so I have to get rid of the south wing."
Or it might be something simple like, "We were going to build in the bunk beds. I went to IKEA and I found a really great bunk bed, so we're not going to do that anymore." So it might be small, it might be large, but it's going to have a scope change and a dollar change and a time change, a schedule change. So those are going to be the three aspects that will always be the essence of any of the contractual elements. Now intriguingly it might be that well the time change is, well zero days. It's not going to make any different.
It doesn't matter, you'll still put it in. It might be that the cost is zero, because we're switching one thing for another and they're roughly the same cost. It's even possible that the scope is zero because you might be saying something like, "All right, we had a deadline built into the contract, we said we were absolutely going to be able to move in on September 1. But then client really wants to use a certain floor tile, and there was a fire, and the manufacturer, they can't get the floor tile out for an extra three weeks." So if the contract has a deadline built into it, and the contractor, even for totally something that's not their fault, they need to change the contract in order to not be in breach of the contract, then they would do a change order.
It might not change dollar, it might not change the scope, but in that case, it would change the time. So at least one of those things has to have a number in it, but you would always say all three. And then once you have that out, they would all be organized, they'd be numbered, they'd be in an order, you'd start with the original contract is, you then add and subtract the various change orders as it goes along, you would have the current contract's amount. And then you would say what this one is doing. Is it changing? Is it changing the time? Is it changing the scope? Is it changing the dollar?
Change Order - Construction Documents and Services - Architect Registration Exam A.R.E. Live autodesk revit | |
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