What is Change Order?

Change Order Definition

A change order details modifications to a project’s scope, requirements, or specifications. It is commonly used in construction, engineering, and other industries to manage and control changes that may occur during project execution. Change orders are necessary for maintaining effective communication between parties, ensuring that any modifications are mutually agreed upon and properly documented.

Change orders typically include essential information, such as a description of the change, the rationale for the modification, and the impact on the project’s schedule, budget, or resources. They may be initiated in response to new requirements or inaccuracies in the original product design, process, and other related items.

In general, the change order process consists of several steps, including the identification of the need for a change, the submission of a written request or proposal, the evaluation of the impact, negotiation between the stakeholders, and the final approval or rejection of the proposed amendment.


What are the advantages of an efficient change order management system

Effective change order management can reduce costs, enhance product quality, and accelerate time to market.

How can teams ensure efficient implementation of change orders?

Teams can ensure efficient implementation of change orders by ensuring that all necessary resources are available and that the change is implemented within the agreed-upon timeframe and budget.

Why is it essential to review and finalize change orders?

It is essential to review and close out change orders to ensure that the change meets the required quality and performance standards and that all related documentation is properly archived for future use.

The Cost

Delivering new products to market is challenging. And it is difficult to see the cost impact of one or more mistakes.

Try our calculator to estimate the impact on your business. Input your business details, select a challenge, and see the real-world cost impact as validated by our customers.