{"id":65271,"date":"2023-01-18T14:00:11","date_gmt":"2023-01-18T20:00:11","guid":{"rendered":"https:\/\/www.projectmanager.com\/?p=65271"},"modified":"2026-04-27T12:04:09","modified_gmt":"2026-04-27T17:04:09","slug":"construction-change-order","status":"publish","type":"post","link":"https:\/\/www.projectmanager.com\/blog\/construction-change-order","title":{"rendered":"What Is A Construction Change Order? Process & Tips"},"content":{"rendered":"

Construction projects are complicated. It\u2019s no surprise that there are changes that impact the work. In order for those surprises to impact the construction plan as minimally as possible, the industry uses something called a construction change order.<\/p>\n

All projects have change orders, but what is a construction change order and when should you use it? We\u2019ll answer those questions as well as outline the process when managing construction change orders. To further help, there is a change order template included and, of course, how construction project management software<\/a> goes even further.<\/p>\n

What Is a Construction Change Order?<\/h2>\n

The construction change order is simply a contract amendment<\/a> between the construction company and its client, which usually defines a change in the scope of work. This is fully documented and often will add to the agreed-upon contract price, project timeline or both.<\/p>\n

However, construction change orders aren’t simply demanded but requested. Both the construction contractor and the owner must both agree on the terms of the construction change order before it’s implemented into the project.<\/p>\n

There are many reasons for a construction change order. The owner might ask for a wall, door or window to be placed somewhere other than where it had been designed in the layout in order to work better with another design element. That\u2019s an additive change order. Other construction change orders delete rather than add, which are called deductive change orders. These can reduce the price of the contract.<\/p>\n

Whatever the reason for the construction change order, the contractor has to implement it without as little disruption to the project plan as possible. ProjectManager<\/a> is online construction project management software that helps you track change orders in real time. Use our kanban board project view to add the construction change order and have a visual tool to track its workflow as it moves from to do, doing and done. You can attach documents and images, comment, add tags, priority and much more. Get started with ProjectManager today for free.<\/p>\n

\"ProjectManager's<\/a>
ProjectManager\u2019s kanban boards track construction change orders in real time. Learn more<\/strong><\/a><\/figcaption><\/figure>\n

When Should You Use a Construction Change Order?<\/h2>\n

Construction change orders can occur throughout the execution of the project plan<\/a>. More construction projects than not will have at least one over the course of the project\u2019s life cycle. Therefore, it\u2019s important that construction contractors are aware of this and plan accordingly.<\/p>\n

Projects will use a construction change order for many reasons, some of which we\u2019ve noted above. Other reasons include errors in design, inadequate scope, weather making construction impossible and inaccurate estimates of the project\u2019s timeline. All of these, and many more, will have contractors using construction change orders.<\/p>\n

Anyone who’s leading a construction project should be ready for managing change<\/a>. The more you understand what can cause these changes to the project\u2019s scope and the better you plan for them, the faster and less impactful the changes can take place.<\/p>\n

Construction Change Order Management Process<\/h2>\n

If nothing is constant other than change, then a process needs to be in place in order to manage the construction change orders that occur over the course of the project. The following are the basic steps that need to be taken when managing the construction change order process. Before you commit to a process, though, make sure that the clients and subcontractors<\/a> have signed on to it.<\/p>\n

Begin With the Contract<\/h3>\n

Since a construction change order is just an addition to the contract between the construction contractor and their client or owner, the contract is the starting point for all change orders that’ll impact the project\u2019s scope of work<\/a>. Before the contract is signed, be sure to read it carefully. In this case, you want to pay close attention to any clauses that relate to change orders, such as those that regard the timeframe, documentation and who is authorized to approve the change.<\/p>\n

Review the Project Plan<\/h3>\n

The next step is to look over the construction plan and specifications. Carefully review your construction documents<\/a> to see if there are any errors, omissions or ambiguities in the scope that the owner and architect need to correct before construction begins. Catching these issues in the plan and specifications will prevent costly and timely construction change orders during the execution of the plan.<\/p>\n

Respond Quickly to Change Orders<\/h3>\n

Whether the contractor or owner requests a construction change order, it should be expedited sooner than later. Delays will likely only add to the expense of time spent responding to the change order. Don\u2019t wait until the last minute as tempting as it might be to put the change order on the back burner. It\u2019s critical to quickly get the change in writing and make adjustments to the schedule<\/a> and costs. Otherwise, you\u2019ll have a backlog of construction change orders that could derail the project or worse.<\/p>\n

Meet With All Involved Parties<\/h3>\n

Not only must the contractor and owner meet to discuss the change before it\u2019s documented and come to an agreement about the cost and impact on the schedule, but they should also stay in communication throughout the process. This includes understanding the reason for the change order and how to manage it. Without an agreement, the change will be more disruptive. Define the new scope of work<\/a> with the owner or their authorized agent. Don\u2019t neglect the subcontractors who will have to make adjustments to their schedules. Let them know how the change will impact their work and define workflows clearly. Then keep everyone updated as the construction work order is executed.<\/p>\n

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Get your free<\/p>\n

Change Order Template<\/h3>\n

\n\tUse this free Change Order Template for Excel to manage your projects better.<\/p>\n\t\t