What is Change Order?

Change Order Definition

A change order details modifications to a project’s scope, requirements, or specifications. It is commonly used in construction, engineering, and other industries to manage and control changes that may occur during project execution. Change orders are necessary for maintaining effective communication between parties, ensuring that any modifications are mutually agreed upon and properly documented.

Change orders typically include essential information, such as a description of the change, the rationale for the modification, and the impact on the project’s schedule, budget, or resources. They may be initiated in response to new requirements or inaccuracies in the original product design, process, and other related items.

In general, the change order process consists of several steps, including the identification of the need for a change, the submission of a written request or proposal, the evaluation of the impact, negotiation between the stakeholders, and the final approval or rejection of the proposed amendment.