A written document that modifies the original construction contract by adding, deleting, or revising work scope, cost, or schedule.

Change Order is a written document that modifies the original construction contract by adding, deleting, or revising work scope, cost, or schedule through formal contract amendments that address project modifications while maintaining legal enforceability and clear documentation of all changes to original contract terms. This essential project management tool consists of detailed documentation that specifies the nature of changes, cost impacts, schedule adjustments, and approval signatures from all parties while providing the legal mechanism for contract modifications that occur during construction due to design changes, unforeseen conditions, owner requests, or field discoveries. Change orders are critical in construction project management where they enable project adaptation to changing conditions, maintain contract validity, provide cost and schedule control, and protect all parties’ interests, making them indispensable for contractors, owners, architects, and project managers who must manage project modifications while preserving contractual relationships and project objectives.

Change orders are utilized in various construction project situations and contract modifications including design changes where architects or owners modify project specifications or requirements, unforeseen conditions where site discoveries require scope adjustments, owner-requested additions where clients desire additional work or upgraded materials, code compliance changes where regulatory requirements necessitate design or construction modifications, value engineering where cost-saving alternatives are implemented, and error corrections where design or construction mistakes require remedial work. Each change order type requires appropriate documentation, cost analysis, and approval procedures based on the nature of changes and contract terms.

Components and documentation requirements for change orders include change description that clearly defines the work to be added, deleted, or modified, cost impact analysis that details all financial effects including labor, materials, equipment, and overhead adjustments, schedule impact assessment that identifies time extensions or accelerations resulting from changes, specification modifications that update technical requirements and performance standards, drawing revisions that reflect design changes and construction details, and approval signatures from authorized representatives of all parties. Comprehensive documentation ensures clear understanding and legal enforceability.

Fun Fact: The first formal change order system was developed for military construction during World War I, and modern construction projects average 5-10% of contract value in change orders, while some complex projects can have hundreds of change orders worth millions of dollars in modifications.

• Field Order