What Is Change Order in Construction?
Definition
A change order is a formal, written amendment to the construction contract that modifies the original scope of work, project cost, or schedule. Change orders must be agreed upon and signed by the owner, contractor, and often the architect before the changed work is performed.
Change orders arise when conditions on a project differ from what was originally documented in the contract. Common triggers include design errors or omissions, owner-requested changes, unforeseen site conditions, code changes, or value engineering decisions. Each change order documents what work is being added, deleted, or modified, along with the cost and time impact.
The change order process typically starts with a change order request or proposal from the contractor, which includes a detailed cost breakdown and schedule impact. The owner and architect review the proposal, negotiate if necessary, and either approve or reject it. Once signed by all parties, the change order becomes a binding amendment to the contract.
Change orders are numbered sequentially and tracked in a change order log. The cumulative impact of all change orders determines the final contract value and completion date. On complex projects, change orders can represent a significant percentage of the original contract amount.
Why It Matters
Change orders are one of the primary sources of cost overruns and schedule delays in construction. Without a disciplined change order process, scope creep, unauthorized work, and disputed costs can derail a project. Proper documentation protects both the owner and the contractor by establishing clear agreement on what changed, why it changed, and how much it costs.
How HomeFloorPlan Helps
HomeFloorPlan makes it easy to document the reason for a change order by linking it to specific locations on the plan. You can capture before-and-after markups, pin comments explaining the change, and keep the full discussion thread attached to the affected drawing area. This visual documentation strengthens your position during change order negotiations.
Frequently Asked Questions
What triggers a change order in construction?
Common triggers include design errors or omissions discovered during construction, owner-requested scope changes, unforeseen site conditions like hidden utilities or soil issues, building code updates, and value engineering decisions to substitute materials or methods.
Can a contractor refuse to do work without an approved change order?
Generally, yes. Contractors are only obligated to perform work defined in the original contract. If the owner requests additional or different work, the contractor can require a signed change order before proceeding, unless the contract includes a construction change directive provision.
What is the difference between a change order and a change order request?
A change order request (COR) is a proposal from the contractor that outlines the proposed change, cost, and schedule impact. A change order is the final, signed document that formally amends the contract. The COR becomes a change order only after all parties agree and sign.