Change Orders in Project Management, Construction & Other Industries

Change Orders in Project Management, Construction & Other Industries

A change order is a change management document that addresses any change in the project scope, detailing what needs to happen, how much it'll cost and when it can be expected to reach completion. It is a means to modify existing contracts and adjust the price and timeline of the project, and is not acted upon until both the owner of the project and the contractor responsible for the change agree on terms and conditions. There are two types of change orders: additive and deductive. An additive change is one that could be as simple as a different color of paint or moving a structure from one place to another on the project site. A deductive change is more likely to result in a reduction of costs and could even shave some time off the project schedule.

Change orders are a critical part of the change control process, and are often part of a process that begins with a request for information (RFI). A change order is used when a change is requested. It captures the details of the requested change, how much it'll cost and the time involved, so all parties can make the decision whether to go ahead or not. A change order log captures changes that are made in a project and ensures they're going as scheduled. It also helps choose which changes to initiate, and keeps that process organized by giving each change order a number.