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Home>Levelset Community>Legal Help>We completed a change order. To submit it with our month requisition for payment, I see it can be on it's own separate continuation sheet instead of changing the SOV for every CO. Is that correct and Is it subject to retainage as well?

We completed a change order. To submit it with our month requisition for payment, I see it can be on it's own separate continuation sheet instead of changing the SOV for every CO. Is that correct and Is it subject to retainage as well?

MassachusettsChange OrdersSchedule of Values

We are a small electrical contractor on a large commercial job. It looks like there will be several Change Orders going forward. I don't have much experience with Change orders.

1 reply

Aug 8, 2019
That's a great question. Regarding updating the schedule of values with change orders - if the specifics on billing change orders aren't set out in the contract, it might be helpful to ask the customer how they should be billed. While the customer's word might not be gospel, if they have a preferred method that makes logical sense and doesn't negatively impact your rights, that might be the best way to determine how to proceed considering that one of the common reasons for a payment application being rejected is the organization of the application, itself.

Generally, though - change orders are reflected both by updating the schedule of values and the continuation sheet. And, amounts owed for change orders will generally be treated like other billable amounts, and as a result, retainage will typically apply.
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