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How do change orders fit into construction projects?

When should you implement a change order?

• Any modifications that alter the original project scope can trigger the need for a change order.
• Unforeseen issues such as hazardous materials or structural deficiencies often necessitate change orders.
• If a client requests a change in design after the project has commenced, a change order must be created to document this.

What’s the process to create an effective change order?

• Start with a reliable change order template; this ensures consistency and completeness.
• Name and contact details of both parties help prevent miscommunication.
• Include information such as project location and relevant contract terms to contextualize the changes.
• Articulate what modifications are necessary, with clarity to avoid ambiguity.
• Clearly break down and justify any increases or decreases in costs correlated with the change.

What should a sample change order form include?

• Collect details like name, city, and phone number for easy reference.
• Document project name and relevant contact information such as address, state, and email.
• Provide a section allowing detailed descriptions of requested changes.
• Clarify how changes are quantified—whether it's a fixed sum or cost-plus basis.
• Specify duration extensions where applicable.

What common mistakes should be avoided with change orders?

• Failure to document changes properly can lead to disputes in the future.
• Miscalculating expenses can result in budget overruns and project delays.
• Not effectively conveying changes to stakeholders can result in confusion and inefficiency.

How can technology help manage change orders?

• Leverage platforms to edit, eSign, and collaborate on change orders smoothly.
• Cloud-based document management streamlines processes, ensuring all parties access real-time documents.
• Having all change orders stored in one place prevents confusion and fosters collaboration.

What legal considerations must be addressed with change orders?

• Being aware of local construction laws helps mitigate the risk of non-compliance.
• Failure to observe legal requirements can result in fines, project delays, or even litigation.
• Researching region-specific regulations can be beneficial, ensuring compliance across all projects.

What should be done after completing a change order?

• Ensure all parties receive a signed copy of the change order for their records.
• Discuss how the change order affects project timelines and adjust schedules accordingly.
• Keep a close watch on work completion and review any further change orders as needed.