Build a Working Capital Strategy that Strengthens Your Financial Future:
Glossary
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Change Order

Change Order

What is a Change Order?

A formal change in a project's scope, often also impacting construction costs and completion dates. In the Change Request example above, when the owner approves the Change Request for the additional door, a Change Order is issued which formally adds the door to the project for the agreed price and (if applicable) a completion date extension.

More In-depth Definition of Change Order

A Change Order is a formal document used in construction to modify the original contract terms, scope of work, or project schedule. It is issued when unforeseen conditions, client requests, or design changes necessitate alterations to the project. Change orders typically outline the nature of the change, any adjustments to the contract price or timeline, and the reasons for the modification. Proper documentation and approval of change orders are crucial to maintaining project control and managing contractual obligations.

Example of a Change Order

Request to add a skylight to a building plan.