A change order is a formal, written amendment to a construction contract that adjusts the scope, price, or schedule after work has already begun.
Owners and contractors use change orders to document agreed adjustments.
What Does a Change Order Typically Cover?
- Additional or revised scope of work
- Adjusted price for the change
- Revised timeline, if applicable
- Both parties’ signatures confirming agreement
Why Are Change Orders Important?
Discovering rotted subfloor during a bathroom remodel, for example, typically triggers a change order covering the extra repair cost before work continues. Verbal agreements to change scope without a written change order are a common source of payment disputes, since there’s no documented agreement on price if a disagreement arises later.
Change Order vs. Scope of Work
The scope of work defines the original agreed project; a change order modifies that original scope after the fact. Every change order effectively rewrites part of the scope of work it’s attached to.