10 Things to Know About Change Orders

March 22, 2023by Jeffrey Davis

Change orders refer to any modifications or additions made to an existing project contract after it has been agreed upon by all parties involved. Here are some things to know about change orders:

  1. Change orders are common in construction projects: Change orders are a normal part of the construction process. They can occur for many reasons, including changes in design, site conditions, or unforeseen circumstances.
  2. They can affect the project timeline and budget: Change orders can impact the project’s schedule and budget, and they may cause delays or additional costs.
  3. Change orders require documentation: All change orders must be documented in writing and signed by all parties involved, including the owner, contractor, and architect/engineer.
  4. They can be initiated by any party involved: Change orders can be initiated by the owner, contractor, or architect/engineer.
  5. They may require additional approvals: Some change orders may require additional approvals from local authorities or regulatory agencies, depending on the nature of the change.
  6. They may impact project scope: Change orders can impact the overall scope of the project and may require additional work or materials.
  7. They should be communicated clearly: It is important to communicate change orders clearly to all parties involved in the project to avoid misunderstandings or disputes.
  8. They should be reviewed carefully: Change orders should be reviewed carefully to ensure they are necessary and reasonable before they are approved.
  9. They may impact the contract terms: Change orders may affect the contract terms, such as payment schedule, completion date, or warranty period.
  10. They can be negotiated: The terms of change orders can be negotiated between the owner, contractor, and architect/engineer to ensure they are fair and reasonable for all parties involved.