IACCM Contract Management Forum

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2019-08-15 14:03:35

Amendment vs. Change Order

My organization (public organization)has a new Procurement Leadership that is requesting that we (Buyers) issue contract amendments for change orders the Engineers (Project Managers) send in for additional work (increase in scope). I see this as change orders for the project and not amendments to the contract. We also have language in the contracts and the change orders follow this process, using the change order document provided in the contracts. I cannot seem to understand why we are doing an amendment for a change order. In my opinion, the scope is increasing but the work (project) is still the same, so there is no need for a contract amendment. Please can anyone provide an insight? Is it required that contract amendment be issued for, and in addition to change orders when there is an increase in scope?
 •  Ministry of Defence  •   2019-10-04 08:42:04
How do you increase the price of the contract, assuming the change order varies the price? Suggest it's via a contract amendment. But, however you do it make sure it's legally enforceable!
 •  Lego  •   2020-02-24 09:32:33
from the similar situations, we have used change orders, what matters is here what is the object of change - increase in assigned resources, increase in delivery method,increase in delivery schedule, increase in scope of work. When the impact is on Resource/related service and requirements - we use change forms to update/prolong the current Statement of work. For me by nature Project Managers - they have the same work to follow-up on a Project timeline, budget, Scope - so to be assigned to a new project, it still for me sounds like to stay in the same role, only managing another project (with another timeline, resources, budget constrains).
 •  Anglo American  •   2020-08-13 02:28:33
If it is additional scope to what the contract had initially set out, then the price and possibly the date for completion would change along with the scope, therefore it amends the contract. It would depend on the type of contract you use and whether there is a provision that states any amendments to the contract must be in writing and signed by both parties.
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