Glossary
Change order
A change order is a change to the work, or extra work, that the client orders after the contract has been awarded. In Germany the contractor’s price for it is the Nachtragsangebot (Nachtrag).
In short
In US federal contracts, a change order is “a written order, signed by the contracting officer, directing the contractor to make a change” (FAR 2.101). Under FAR 52.243-4 (Changes, construction), the contracting officer may change the work by written order.
A change order is a unilateral modification. The negotiated price adjustment that follows is a bilateral supplemental agreement (FAR 43.103).
In Germany, the contractor’s price for a change is the Nachtragsangebot, or Nachtrag. Under VOB/B § 2 Abs. 5, a new price is agreed for a change that alters the basis of a price, taking into account the extra or reduced costs, and the agreement should be made before the work is done.
Example
During installation, the client decides to add a second bathroom. The installer sends a Nachtragsangebot with the new positions, priced on the basis of their original calculation, and asks their wholesaler for a quote for the additional sanitary ware before ordering.
In US private construction (AIA usage), a change order is agreed and signed by the owner, the architect and the contractor. A construction change directive lets the owner direct the change before the price is agreed.
What to watch for
Quote and confirm additional deliveries for a change order separately, so that they can be matched to the new positions.
Under VOB/B § 2 Abs. 6 Nr. 1, the contractor must announce a claim for extra work before starting it. Quotes are therefore needed quickly.
Keep prices consistent with the original job.
Agree the new price before the work is done (VOB/B § 2 Abs. 5).
Not to be confused with
Bedarfsposition: priced in the bid and ordered later if needed.
Nebenangebot: an alternative offered with the bid, before the award.
Quantity changes on a unit price contract: these fall under VOB/B § 2 Abs. 3, see unit price.
Related terms
Unit price (in a bill of quantities)
A unit price (Einheitspreis, EP) is the price for one unit of a bill of quantities position, such as one metre or one piece. Quantity times unit price gives the item total, and the item totals add up to the bid total.
Bedarfsposition (provisional item)
A Bedarfsposition (also Eventualposition) is an item in a German bill of quantities for work that is only carried out if the client orders it during construction. Without total, the bidder states a unit price only.
Nebenangebot (alternative bid in a German tender)
A Nebenangebot is the bidder's own alternative proposal to a tender, for example with another design, method or product. The tender documents state whether it is allowed, and whether only together with a main offer.
Leistungsbeschreibung (statement of work in a German tender)
A Leistungsbeschreibung describes the work being tendered. It is the umbrella term: a Leistungsverzeichnis, with quantities for each item, is one form of it, and a Leistungsprogramm, with goals and requirements, is the other.