Change is the only constant in life. This old proverb is particularly true for the world of project management, where budgets, timelines, and work plans are constantly being revised or moved around. In fact, the more complex and longer the project, the more changes you can expect to make during its entire lifecycle.
But managing and & tracking these changes can be real tricky for project managers and other external stakeholders. That’s why keeping a detailed log of your change orders & any supporting docs is a standard business practice in so many industries, especially in construction.
But before we get down to the specifics, let’s ask ourselves…
What’s a Change Order?
At its core, a Change Order is a written amendment to an existing contract. It is used to formally request and process any change to your original project plan or design. In most cases, these are changes in your project’s scope, Work Breakdown Structure, budget, or timeline.
A Change Order Form ensures that all changes are correctly evaluated, authorized, and implemented in a structured manner. It serves as a great tool for maintaining project integrity while accommodating necessary adjustments.
A standardized way of processing changes also allows you to avoid scope creep later on while staying in the loop about what changed, when, and why – and how this change affects individual project roles, key team responsibilities, deadlines, and deliverables.
Our designer-developed template saves you hours in formatting work. In our premade sections, you can flesh out details about each change in a systematic way, starting with a description of the change, its rationale and specifications, how it impacts on your budget or timeline, and who is authorized to request & approve it.
Overview
In this section, you provide basic details such as:
- Change Order No: A unique identifier for the change order to help you track your changes
- The date the form was submitted as a reference point for tracking project changes over time
- The name and address of the project
- Name of the site manager (usually, the contractor)
- Name of the project owner
- The name and phone number of the person requesting the change
Description of Change
A clear description of the desired change makes sure everyone involved is on the same page.
Is there a specific area, domain, or phase of a project likely to be affected by the change – say, product features or team structure? One common way of categorizing changes is into three main types: scope changes, schedule changes, or budget changes – each dealing with modifications or revisions to a different aspect of the project.
In the construction business, it is very common for changes in building technique or modifications in the building materials in light of unforeseen factors such as soil contamination or changing client needs.
Reason for Change
In this section, you will need to pinpoint why the request for a change was mad, or what problem it solves.
For example, if your project faces zoning or permit issues, changes may be needed to meet the new regulatory requirements. In this case, you need to specifically point out the regulations or laws in question so all stakeholders are aligned in their understanding of why the change was necessary in the first place.
Whether you are switching from a high to low-quality building material due to a budget deficit – or improving the energy efficiency of a building to meet sustainability goals, it is imperative that both clients & contractors are duly informed of the reasons and justification for each change in the original design or contract before deciding whether to go through with it.
Specifications of Change
Time to get down to the specifics of your desired change. Put another way, this section allows you to define the technical heart of the issue at hand.
If specifications are incomplete or vague, contractors, subcontractors, and suppliers will interpret the requirements in their own, different ways. In fact – did you know, that one of the major reasons for disputes in the construction businesses is inconsistencies among specifications, such as that between initial and final finish schedules. These design conflicts or specification gaps often lead to delays, cost overruns, and legal disputes.
You can avoid these negative consequences by being as meticulous and diligent as possible when filling out this section. Make sure you mention any key requirements, performance standards, measurements, material specifications or other operational details of the change to avoid any possibilities of confusion or miscommunication later on.
Supporting Documents
Has the change in question been green-lit by the right people? Do you have a written piece of advice from an expert or technical authority recommending the change?
Remember, it’s imperative to back up your change request with the right documentation which may include things like:
- Copy of the original contract or design
- Approval emails
- Technical reports & assessments
- Relevant licenses or permits
- Cost estimates etc.
In our template, you can check one of the following three options:
- All documents attached
- Some but not all documents attached
- No documents attached
Changes In Contract Price & Timeline
Once you’re confident you have all the details about the change, it’s time to assess and quantify its impact on your project’s overall budget and timeline.
Not surprisingly, these two side-by-side sections are at the heart of a Change Order as they sum up the revised duties or responsibilities of each party. For example, a change may require additional funds to meet a new client demand; this will need to be carefully documented in this part so the client knows how much more he needs to pay to a contractor in order to meet his contractual obligations.
Similarly, if a proposed change affects your timeline, say, due to unexpected delays caused by a new regulatory policy or hostile weather conditions – you need to specify the expected duration of this delay so both parties have a clear estimate of time to completion.
First up, specify whether or not the price or timeline will change. If so, go on to specify the following additional details:
- Original price or timeline
- Net changes in previous change orders
- Net increase or decrease
- Total contract price/timeline after approved changes
Remember, litigation in the construction industry often boils down to disagreements between contractors and owners over whether a certain change requires a revision to the compensation or schedule, or whether it is already covered under the original contract.
For this reason, it is essential to clarify these matters in a Change Order Form to prevent miscommunication & legal disputes later on.
Signatures
The last thing you need to do is add the signatures of all necessary representatives. Signatures show that the involved parties endorse and commit to the proposed changes, thus creating a legally binding agreement and ensuring accountability.
Ideally, work on a requested change should never begin without a signature or under the mere assumption that the property owner will approve a change later.
Who Is Our Template For?
- Project Managers to review, approve, and track proposed changes.
- Contractors and subcontractors to formally request modifications and implement approved changes.
- Clients or Project Owners to approve or decline requested changes based on impact assessments.
- Financial and Procurement Teams to update budgets, costs, and procurement plans accordingly.
- Legal and Compliance Teams to ensure that all modifications align with contractual and regulatory requirements.
- Quality Assurance Teams to ensure that the final product meets the required quality standards.
Why Do I Need One?
- To provide a formal record of any proposed changes to the project.
- Ensure accountability and approval from relevant stakeholders before implementing modifications.
- Assess the impact of changes on project scope, budget, timeline, and resources.
- Enhance communication and transparency between clients, contractors, and project teams.
- Control scope creep by systematically managing and documenting changes.
Wrap Up
All projects are sensitive to change and must learn to adapt to the dynamic factors that affect them. A change order records data & information that can be helpful during the auditing and project review process by helping you track and document any updates or revisions to a project, and by doing so, ensure transparency, accountability, and the effective management of changes.
Remember, construction projects exist in a perpetually fluid environment, where any deviation from the original contract without a paper trail can leave either side open to legal consequences. You also need to keep a construction change order log for invoicing purposes. Moreover, tax laws in certain jurisdictions also require you to save these documents for a certain period of time.
