What Is a Change Order?

A change order is a formal document used to modify the terms of a construction contract by altering the scope of work, cost, and schedule. It serves as a legally binding amendment to the original contract, providing a structured process for reviewing, negotiating, and documenting changes. 

Change orders are essential in construction projects as they help manage unforeseen changes or modifications requested by clients, ensuring that all parties are aligned on the scope, costs, and schedule impacts.

Key Features of Change Orders

Formal Process: Change orders involve a detailed procedure, including documentation, review, negotiation, and agreement between the owner and contractor. This ensures that the impact of the change on the project’s cost, schedule, and scope is fully understood.

Contractual Modifications: Once a change order is agreed upon, it becomes a legally binding modification to the original contract, providing legal protection for both parties.

Change Evaluation: Change orders involve a thorough evaluation of the proposed change, considering factors such as project costs, schedule impacts, quality, and other relevant considerations[6].

Types of Change Orders

Change orders can be either additive or deductive:

Additive Change Orders: These add work, materials, or expenses to the project, potentially increasing the contract price and extending the timeline. Examples include adding a window or changing the finish of floors.

Deductive Change Orders: These reduce or eliminate work, materials, or costs, which can decrease the contract price and shorten the project duration.

Importance in Construction Projects

Change orders are indispensable in construction due to the dynamic nature of projects. They help manage unexpected site conditions, design changes, or client requests, ensuring that projects remain on track while maintaining legal and financial clarity for all stakeholders.

From field to office, change orders don’t have to slow you down. Learn how Workyard integrations keep everything connected:

• The 7 Best Sage Integrations (Intacct, 50, 100 w/ Time Tracking + More) for 2025
• The 7 Best Gusto Integrations (Time Tracking + Scheduling + More) for 2025
• The 7 Best Paychex Integrations (Time Tracking and More) for 2025
• The 7 Best QuickBooks Integrations (Time Tracking and More) for 2025

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