changeorder

A change order is a formal document used in project management and contracting to record an approved modification to the original contract scope, price, or schedule. Change orders are common in construction, engineering, and IT projects where work may be affected by design changes, site conditions, or client requests. A change order is distinct from an informal change request or a claim; it is a signed amendment that becomes part of the contract.

A typical change order includes a description of the change, the rationale, affected quantities or scope, revised cost, updated schedule or milestones, revised drawings or specifications, risk and responsibility allocation, and the signatures of authorized representatives.

Process-wise, change orders begin with an initiation by the owner or contractor, followed by impact analysis, negotiation, and formal approval. When approved, contract documents are amended and the revised scope, cost, and timeline are reflected in the project baseline. If not approved, the work may continue under the original scope, or disputes and claims may arise.

Types of change orders commonly include additive (adds scope) and deductive (removes scope). They can affect the critical path and overall budget, and may trigger changes to warranties, risk allocations, and payment schedules. Many contracts establish procedures for issuing, reviewing, and documenting change orders to ensure proper authorization and record-keeping.