What's the difference between a change order and work orders?

[diggerman]

This is obviously a no brainer to some. However, my company does work orders from time to time on our projects.
It is confusing to me. How are supplemental agreements related to work orders?

 

[sam74]

My interpretation maybe right or wrong but this is how I see it.

Change orders are usually made regarding materials specified to use on a job. The contractor would rather use a product that is similar to what was specified to be used but was not included in the list of pre-approved materials. This requires approval from the A/E and maybe the owner. Cost savings could be a factor and the original bid maybe adjusted to reflect the cost savings to protect your client and keep the contractor from getting rich.

Work orders would be made when some work that was not originally anticipated (not in the existing contract) needs to be performed to ensure a quality finished product. In this case it would need to be approved by the A/E and owner and would require a written approval to begin said work along with an agreed upon increase of compensation to the contractor. We usually just did addendums to the orignal contract/specs but if something came up later in the project I would imagine a work order would be more appropriate.

Probably several different scenarios where things like this occur and maybe vary the lingo (change vs work) regionally as well.

 

[diggerman]

That makes more sense Sam72....thanks. How are supplemental agreements related to work orders?

 

[Ron]

diggerman...you jumped into an area that confuses even the best of lawyers! A "change order" (as defined in AIA documents) or a "work change directive" (as defined in EJCDC documents) is a change based on the contract documents and the procedures outlined therein. It refers to a request by the contractor to the owner, typically through the Architect or Engineer, for some change in the contract for construction. A supplemental agreement is different in that it is likely a supplement to the contract between the owner and the professional, rather than one between the owner and contractor. A supplemental agreement can be for any subject and any reason...there just has to be a concurrence between the parties.

 

[diggerman]

It gets rather confusing. Thanks for clarifying. I'm in the CEI industry and I see nothing but Work Orders all over everyone's desk. From what I've been told, there is contingency money in these state contracts that are strictly for work orders in case there are issues that need fixed that fall outside of the contract? I guess I need to take a Final Estimate II course.

 

[diggerman]

I think the county and city call them "change" orders. The state calls them work orders. For example....the contractor won the job and started working. He then realizes that he bid for like 30000 feet of ductile iron pipe without considering the tracer wire (wire attached and backfilled to the pipe)for locating purposes. So then the contractor requests for a change order, claiming that the bid never itemized it and he should get paid for an additional x amount trace wire. Isn't that too bad? I can't believe that contractors have the nerve to do this. They know what there doing!

 

[Ron]

diggerman...you're in a whole different realm..CEI on state or federal projects. In those cases, a work order can be anything, but is usually defined in the contract documents. It can work like a change order, or it can be a contractual extension that allows the state agency to expand the scope of the work based on THEIR need...not the need of the project. For instance, I've seen work orders under a contract that had nothing to do with the base contract, but were issued under that for expedience and to get around having to go through their whole procurement process for something that needed to get done quickly.

 

[diggerman]

Well that explains a few things. Our project was only supposed to be a RRR project and ended up re-constructing about 30 mitred ends along with their accompanying side drains. All exercised via work orders!!There's about a quarter of a million dollars in W.O's alone! I guess there is money/funding set aside for this? Or is this where "contingeny" amount come into play? Construction management is truely a different realm.

http://www.kci.com

 

[oneintheeye]

A work order is an order to complete an agreed set of work. i.e. you get a job, you set up a work order to monitor it (or for large jobs numerous work order to split the contract up).

If there is a change to the scope or increased work (outside of your influence, by that I mean someone elses fault) then you generate a change order advising the client of aditional work and costs. This can sometime generate its own work order or can be added to the old work order.

Thats how it works here anyway, design consultant in UK

 

[dik]

My experience as follows:

I've not seen Work Orders as part of a Project Contract; contractually, a Change Directive is the manner of binding the change into the original contract.

It is possible for other separate work to be done using a Work Order that is not part of the original contract.

In these environs, the owner must be careful about having more than one contractor on the same project. It is possible that the Owner might then be considered as the Constructor, which brings about a whole bunch of liabilities (in particular safety related issues).

Dik

 

[bimr]

Are you referring to a Job Order:

Job Order Contracting (JOC) is a way for organizations to get numerous, commonly encountered construction projects done quickly and easily through multi-year contracts. JOC reduces unnecessary levels of engineering, design, and contract procurement time along with construction project procurement costs by awarding long-term contracts for a wide variety of renovation, repair and construction projects.

With an emphasis on partnering and team work between owners and contractors, JOC provides the methodology to execute a wide variety of indefinite delivery, indefinite quantity, fixed price, multiple simultaneous orders for renovation, rehabilitation and repair work for large facilities and infrastructures.

http://en.wikipedia.org/wiki/Job_Order_Contracting

Change Order:

Change Order--A document recommended by Engineer which is signed by Contractor and Owner and authorizes an addition, deletion, or revision in the Work or an adjustment in the Contract Price or the Contract Times, issued on or after the Effective Date of the Agreement.

Standard General Conditions

Work Order:

A work order or job order (sometimes job ticket or work ticket, as it often has some type of ticket attached) is an order received by an organization from a customer or client, or an order created internally within the organization. A work order may be for products or services.

http://en.wikipedia.org/wiki/Work_order

 

[Drumchaser]

I think the meaning is dependent on your location.

Work Order- Approval of work to proceed on previously let and contracted work. All prequalification in and according to requirements.

Change Order- Change in scope and character of the work in which all parties to the contract agree on additional work and monies.

 

[bimr]

There is another document titled "Work Change Directive" that may be used.

This document was developed for use in situations involving changes in the Work which, if not processed expeditiously, might delay the project. These changes are often initiated in the field and may affect the Contract Price or the Contract Times. This is not a Change Order, but only a directive to proceed with Work that may be included in a subsequent Change Order.

http://www.rurdev.usda.gov/IL/eng/1780.guide11C.doc