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What Are Change Orders and How Do You Deal with Them?
I’ve worked in the architecture and construction fields but only as the company accountant. The project managers dealt directly with clients and vendors, bringing each project along to completion.
Sometimes during their daily work schedule there would be a disruption due to a change in plans.
Sometimes the changes were minor; other times they were fairly substantial for whatever reason.
When these changes occurred, a “change order” was prepared that specified details on the changes and the estimated or actual costs involved. All parties to the original contract were required to sign off on the change order. Very little was done verbally – it required written notices.
I’m wondering if any brokers or truckers have had their initial orders changed and how these changes were dealt with.
If the change was due to some confusion at the very beginning, you would think a person would want something in writing instead of verbally especially on any subsequent change.
I encourage my clients to prepare a template that can be used to get the changes in writing so they can be faxed/emailed to each party involved.
Changes in the construction or architecture businesses could amount to several thousand dollars on up to tens of thousands of dollars.
But it’s unlikely that changes in moving freight will be huge dollar amounts but the fact is there will probably be additional demands made especially for the trucker on their time and/or costs.
They should be rightly compensated for these and the shipper and/or broker should agree to this preferably before the truck begins to embark on any change.
If you have any input on how YOU have dealt with changes and departures from the initial requirements, send an email to Contact below. Be brief and I’ll make these comments available for others.