All stakeholders must sign the G701 Change Order Form for approval to be valid. All parties involved must sign each change order to be considered a contract amendment. The appropriate parties are the contractor, the owner and even the architect. Also, make additional copies so that each party has a copy of the agreed changes. We have a GC that deducts fees/and/or deductive changes from our invoice without notice. Whenever this happens, I am notified by our controller, who in turn asked the GC for backup. So far, every setback or. If this is the first order of modification of the project, this value is 0. If this is the second order of changes or later, this field is the total value of the previous changes. Keep in mind that this can be a positive or negative change, as some change orders are deductive change orders. Do not include changes made as part of a building modification policy unless all parties have subsequently accepted the change and registered it as a formal change order. This guide will help you understand how to complete form AIA G701 and how to avoid submission errors that could lead to late payments Payment applications exist, as documentation of completed work on a construction project is crucial for payment.

Change orders work in the same way. Miscalculations or failure to add a new schedule for changes can cost you money. Errors or incorrect delivery methods may result in rejection. This leads to late payments and project delays. There is no guarantee of payment without the proper submission and approval process for a change order. For general contractors who collect multiple change orders from multiple subcontractors, the process is even more complex. Add (or subtract) the previous two lines. This is the new total amount of the contract or GMP of the contract after taking into account the current modification order. It offers a space for a complete description of the change and for the signatures of the owner, architect and contractor. The more details here, the better. It is important to be specific in case a payment dispute arises later on the details of the work.

The best course of action is to include all applicable annexes. This may include drawings, specifications, and other documents or data that clearly indicate what is expected as part of the change order. The AEOI® Contractor`s Form G701 Change Order may be used as written documentation of changes to the work, contract amount or mutually agreed contractual period between the owner and contractor. The three most common documents are usually used together as part of the payment application process. These include the AIA G701 Change Order Form, the AIA G702 Application and Payment Certificate, and the AIA G703 Supplementary Sheet. The AEOI offers three different ways to purchase the AIA G701 Change Order Form, depending on whether you are an AEOI member and what type of Change Order Form you are looking for. Just add the two lines above it. This number is the sum of the amount of the original contract and the net change caused by previously authorized change orders.

If you have the previous change order handy, the amount in this section corresponds to the ”new contract amount” in this document. These contracts ensure that the landowner and contractors comply with the agreed terms of the contract. Nevertheless, the elaboration of such a contract requires considerable presumptions for all parties concerned. There are a variety of reasons why things may not go as planned during a construction project. In this situation, change orders come into play. This section begins with ”THE AGREEMENT IS AMENDED AS FOLLOWS”. Here you need to describe any changes made to the original contract. Provide full details of the proposed changes and the cost of each change. The AEOI G701 requires a reasonable amount of accounting and documentation to ensure that the numbers match those of all others.

However, there are some advantages to using a standardized form. They can easily be referenced, and they keep everyone on the same page (literally!). If everyone communicates well, change orders and payment requests can be approved quickly and you can get paid faster. In the construction industry, the work you do is not as important as the work you document. Always keep proper records of approved change orders to make sure you get what you deserve. If you don`t already have one, a document retention strategy can help you save money and get paid faster. This is the initial contract amount for the work. This number is the same throughout the project, no matter how many change orders you write. The AIA change order form works for both a fixed price contract amount and a guaranteed maximum price value.

In this upper part of the AIA G701 you will find all the information about the parts and the construction project itself. When you use the ear-ear payment request, the same header information applies. But things are constantly changing in a construction project. No one wants to rewrite the contract every time the owner wants to change something. This is where change orders come into play. If the owner wants to make additions or deductions to the scope of a contractor`s work, they can do so with a change order. The AIA G701 header contains basic information about the project. You will find that it contains the same information required for other EAR documents. By filling in each part of the AIA G701 Change Order Form, you can avoid common mistakes. Errors prevent change orders from being approved.

This section describes the proposed changes to the original contract. Unlike other parts of the AEOI forms, this section of the change order form leaves a blank field for details of changes to the agreement. In addition, you must describe in detail the changes made to the original contract. Enter this information. Next, estimate the cost of each change in the room below, which reads as follows: ”THE CONTRACT WILL BE MODIFIED AS FOLLOWS”. In this section, provide as much detail as possible and add the relevant attachments. .