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A builder is constructing a 1,400 sq ft house for a lump sum of $300,000. The owner asks the builder tochange the carpet to hardwood in the main room, so the builder issues a Change Order request for $3,000 on June 1, 2017. The owner approves it on June 5, 2017. The builder requests another Change Order on June 10, 2017 for $1,000 to build a deck, which was never part of the scope of work. The owner rejects it on June 15, 2017. The builder issues a request for a Change Order on June 15, 2017 to increase the price from $305,000 to $325,000 citing an increase in building material costs. The Owner negotiates the increase to $ 310,000 and issues a Change order on June 27, 2017.
Instructions:
Consider the information that needs to be captured in the Change Order Log.
Explain the four key components that define continuous quality improvement.
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