Change Order
A change order is a formal document that modifies the original scope, timeline, or budget of a project after the contract has been signed. When a client requests additional work, removes previously agreed deliverables, or changes project requirements, a change order captures the modification and its impact on cost and schedule. Change orders protect both parties: the service provider is compensated for additional work, and the client has visibility into how changes affect the project. A change order typically describes the requested change, explains why it is needed, estimates the additional cost or time, and requires written approval from both parties before work begins. Without a change order process, projects are vulnerable to scope creep, where small additions accumulate into significant uncompensated effort. Most well-structured contracts include a change management clause that outlines how change orders are submitted, evaluated, priced, and approved. This process ensures that modifications are intentional, documented, and mutually agreed upon.
Example
Midway through a website redesign, the client requests the addition of an e-commerce module that was not in the original scope, so the developer submits a change order for $4,500 and two additional weeks of work.
Direct answer
Learn what a change order is, how it documents scope changes during a project, and why every service contract needs a process for handling them cleanly.
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Frequently asked questions
- When should you use a change order?
- Use a change order whenever there is a modification to the agreed scope, timeline, or budget of a project. This includes adding new deliverables, removing existing ones, changing specifications, or adjusting deadlines. Even small changes should be documented to prevent misunderstandings and ensure both parties are aligned.
- Can a client refuse to approve a change order?
- Yes. A change order is a proposal for modification, not a unilateral decision. If the client does not approve the change order, the project continues under the original terms. The service provider should not begin work on the requested change until the change order is signed by both parties.
- How does a change order prevent scope creep?
- By requiring formal documentation and approval for any modification, a change order process forces both parties to evaluate the cost and timeline impact of changes before they are implemented. This prevents the gradual accumulation of small requests that can derail a project's budget and schedule.