Understanding Construction Change Orders
A change order formally amends the original contract scope, price, or schedule. It ensures both the contractor and client agree on the new terms before extra work begins.
Key Information to Include
- Description of Change: Detailed explanation of the new work.
- Cost Impact: Exact breakdown of additional costs or credits.
- Schedule Impact: Number of days added to the project timeline.
- Signatures: Formal approval from the authorized client representative.
✨ Benefits of Digital Tracking
- Protects Profit Margins: Ensures you are paid for every piece of extra work.
- Prevents Schedule Disputes: Formally extends the deadline, protecting against delay penalties.
- Maintains Client Relationships: Clear upfront costs prevent end-of-project billing surprises.
Best Practices & Workflow
Never start out-of-scope work without a documented change order. Formalize agreements quickly with client approvals so the project doesn't stall, and ensure any related RFIs are resolved.
❓ Frequently Asked Questions
Anytime the client requests work outside the original contract or unforeseen conditions require a scope change.
Can work start before it's signed?It is highly discouraged. Starting without a signature puts the contractor at total financial risk.
What if the client refuses to sign?Pause the out-of-scope work immediately and refer to the dispute resolution clause in your main contract.
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