What Is a Change Order?
A change order is a written agreement that modifies the original scope of work in a construction project. When changes happen, the modification must be documented so that everyone clearly understands what is changing, how it affects project cost, and how it affects the construction schedule.
Change orders are a normal part of many construction projects. Even with careful planning, new ideas or adjustments often arise once construction begins. Here are the three most common reasons.
01
Sometimes homeowners decide to change a design element during construction. These changes can affect both materials and the labor required to complete the work.
These changes can affect both the materials and the labor required to complete the work.
02
Homeowners may decide to upgrade certain materials after seeing samples or visiting showrooms.
These upgrades may increase the cost of materials beyond the original allowance in the contract.
03
Occasionally unexpected conditions are discovered during construction.
When these conditions require additional work, the scope of the project may need to be adjusted through a change order.
Because a change order modifies the original scope of work, it often results in a change to the project price. The change order clearly documents the price adjustment before work is performed.
Increase
Decrease
Remain neutral
The change order clearly documents the price adjustment before the work is performed.
Because a change order modifies the original scope of work, it often results in a change to the project schedule. The change order clearly documents the schedule adjustment before work is performed.
Ordering new materials may require additional lead time
Additional work may extend the construction schedule
Redesigning certain elements may require coordination with other trades
Clear documentation keeps every schedule adjustment transparent before the work begins.
01
STEP-01
The homeowner or contractor identifies a requested modification to the original scope of work.
02
STEP-02
The contractor reviews the requested change and determines the cost difference.
03
STEP-03
The change is documented in writing so that all parties clearly understand the modification.
04
STEP-04
The change order must be approved before the work is performed. This ensures that both the homeowner and contractor agree on the modification.
Although change orders are common, careful planning can help reduce the number of changes during construction:
Taking time to plan decisions early in the project can help prevent late changes that affect construction progress.
UP NEXT
This page will explain what allowances are, how they work in estimates, how selections affect allowance pricing, and why allowances are used in construction contracts.
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