Change Order
thats funny
Newbie
Joined: Apr 2010
Posts: 4
Likes: 0
Hi thanks 06 DIESEL for explaining in easy way about the Change Order and Contract, as i my self work in software company me too have the same system for taking the new project there we call the biding type as TM (time and materiel) or Change Case (Fixed)...
BOMBARDIER
Joined: Mar 2007
Posts: 11,159
Likes: 918
From: Gloucester, VA
Yeah Change Orders can get REAL expensive REAL quick.
The reason for it being in the construction equipment forum is I thought that most guys that check this forum would understand the relationship between Change Order and Contract.
A Contract is the origional work order with a set price for a set amount of work.
A Change Order is over and above the origional contract, like if you are digging a trench and find rock in the trench and can not just dig it out, you have to either hammer it out or blast it out. You would get a change order for T & M (time & material). This is a really good way to make money really quick.
Most companies that I work with make more money on change orders than they do on contracts. This is because they have to have the lowest price to even get the job so they barely make any money (still make enought to stay in biz though) with the contract and hope for change orders to make more profit off of.
It it clear as mud now?
If not I "give:
I guess that assuming did you know what
A Contract is the origional work order with a set price for a set amount of work.
A Change Order is over and above the origional contract, like if you are digging a trench and find rock in the trench and can not just dig it out, you have to either hammer it out or blast it out. You would get a change order for T & M (time & material). This is a really good way to make money really quick.
Most companies that I work with make more money on change orders than they do on contracts. This is because they have to have the lowest price to even get the job so they barely make any money (still make enought to stay in biz though) with the contract and hope for change orders to make more profit off of.
It it clear as mud now?
If not I "give:
I guess that assuming did you know what
[/QUOTE]
Diesel Fan
Joined: Jul 2009
Posts: 79
Likes: 5
From: Aiken,SC
HAHA That pretty much sums it up. Thats how we have been lowballing for 2 years now. I can see the change orders other contractors can't. God I hope they never figure it out.
This ain't rocket surgery!
This ain't rocket surgery!
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