How to Do a Change Order

The change order process begins with identifying the need for a modification, followed by discussions between the contractor and client to define the scope of the change. 

The contractor then prepares a detailed proposal, including cost estimates and schedule adjustments. 

Once both parties agree, the change order is signed and becomes legally binding. 

Proper management of change orders is critical to minimizing disruptions, maintaining project efficiency, and ensuring all stakeholders remain aligned.

Here’s a step-by-step guide on how to manage a change order effectively:

Step 1: Identify the Need for a Change Order

Review the Contract: Ensure that the contract includes a clause for handling change orders, outlining procedures for modifications to the original scope of work.

Determine the Reason: Identify why a change is needed, such as unforeseen site conditions, design errors, or client requests.

Step 2: Draft the Change Order Request

Prepare a Proposal: Include a detailed description of the change, reasons for it, and an estimate of the cost and time impact.

Use a Standard Form: Utilize a change order template to maintain clarity and consistency.

Step 3: Submit for Approval

Review and Negotiation: Send the change order request to stakeholders for review and negotiation. Ensure all parties agree on the scope, cost, and schedule adjustments.

Obtain Signatures: Secure signatures from the project owner, contractor, and architect/engineer to formalize the agreement.

Step 4: Implement the Approved Change

Notify Team Members: Inform all relevant parties, including subcontractors and suppliers, about the approved changes.

Update Project Plans: Adjust the project schedule and budget to reflect the new terms.

Step 5: Track and Close the Change Order

Monitor Progress: Ensure the changes are implemented as planned and address any deviations promptly.

Document Completion: Close the change order once the work is completed and update final payment records.

Best Practices

Use Standardized Templates: Ensure consistency and efficiency by using standardized change order templates.

Maintain Clear Communication: Keep all stakeholders informed throughout the process to avoid misunderstandings.

Document Everything: Keep detailed records of all changes and approvals for future reference.

From kickoff to closeout—there’s a template for that. See what else you can download from Workyard:

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References