Construction Order. An order authorizing the CMR to proceed to construct a Component pursuant to the Component Construction Documents. A Construction Order may often be called a “Construction Component Change Order,” “Component Change Order,” or “CCO” within the industry. A Construction Order does not necessarily change the overall amount of a contract, but it may.
Construction Order. (a) In the case of the initial Construction Order, payment and performance bonds furnished by the CMR in conformance with and in the form set forth in the Contract Documents designating the CMR as the principal obligor and the Owner as the obligee, in an amount of the Change Order Sum covering the Work under that Construction Order and, in the case of subsequent Construction Orders, an endorsement to such bonds increasing the aggregate amount of the bonds to an amount equal to the aggregate of the Change Order Sums of all Construction Orders to this Contract. If in connection with a Construction Order, the CMR has furnished payment and performance bonds in the amount approved by the Board as the reasonably expected aggregate amount of the Change Order Sums of that and any prior Construction Order and all subsequent Construction Orders and covering all such Work, then upon entry of a subsequent Construction Order, no additional endorsement to payment or performance bonds shall be required provided that the aggregate amount of the Change Order Sums of all Construction Orders does not exceed the penal sum of each bond. However, the Board may require written confirmation from the surety that the outstanding bonds cover the Work under a subsequent Construction Order. No election or failure of the Board to request such confirmation shall affect the rights of the board or there under the existing bonds covering such Work.
