Change orders are sometimes unavoidable part of a project, especially when it comes to construction projects. A change order is a contract document between the owner, contractor, and architect detailing changes to the original project scope, schedule, and budget. It is important to be aware of and understand the process of change orders in order to ensure that all parties involved are on the same page and that the job is completed in an efficient and effective manner.

What is a Change Order?

A change order is a document that is used to modify an existing agreement or contract. It is generally used to document changes in the scope of work, materials, or timeline for a project. It is also commonly used to document additional services or costs that were not included in the original contract. Change orders are used to ensure that all parties involved in a project are aware of the changes to the project and any additional costs that may be necessary.

Change orders are essential to the success of any project, as they provide a way to document changes and stay on track with the project timeline and budget. In some cases, change orders can even be used to negotiate a better price for the project.

Reasons for Change Orders

There are several reasons why a change order may be necessary on a project. The most common reason is that the project scope has changed, either due to changes in the design or due to unforeseen circumstances. In these cases, the change order is used to document the changes in the project scope and any additional costs that may be required.

Another common reason for a change order is when the project timeline has changed due to unforeseen circumstances. This could be due to delays in the project timeline due to weather, additional materials needed, or other factors. In these cases, the change order is used to document the changes in the project timeline and any additional costs that may be required.

Finally, change orders may also be necessary when the project budget has changed due to unforeseen circumstances or changes in the project scope. In these cases, the change order is used to document the changes in the project budget and any additional costs that may be required.

Specific Examples of Change Orders

Some examples of when a change order typically comes up are:

• dry rot has been found, therefore repairs need to be made before the initial contract work can proceed
• the initial design isn’t as appealing once the space has been prepared for the new design
• new aesthetics have been discovered midway through and the customer would like to incorporate them

How to Identify When a Change Order is Needed

Change orders are an essential part of any project, and it is important to be able to identify when a change order is needed. The first step in identifying when a change order is needed is to review the existing project documents to determine if any changes have been made to the project scope, timeline, or budget.

Once the project documents have been reviewed, it is important to communicate with all of the parties involved in the project. This includes the owner, contractor, and architect. It is important to communicate with the parties to understand if any changes have been made to the project and to determine if any changes are necessary. This will help to identify any potential issues that may need to be addressed with a change order. Typically price and timeline are the largest factors.

Finally, it is important to review the project on a regular basis to identify any potential changes that may need to be addressed with a change order. This includes reviewing the project timeline, budget, and any other documents related to the project. This will help to ensure that the project is on track and that any potential changes that may be necessary are identified in a timely manner.

What are the Benefits of Change Orders?

Change orders are an essential part of any project, and there are several benefits to using them. The first benefit is that they provide a way to document changes to the project scope, timeline, and budget. This helps to ensure that all parties involved in the project are aware of any changes and are aware of any additional costs that may be required. Staying on top of the change in price will prevent surprise budgetary concerns in the future.

Finally, change orders can provide a way to stay on track with the project timeline and budget. By tracking changes and documenting them, it is possible to ensure that the project is completed in an efficient and effective manner. This can help to avoid costly delays and ensure that the project is completed as timtely as possible and within budget.

The Process of Ordering a Change

Once it is determined that a change order is necessary, the process of ordering a change begins. The first step in the process is to communicate with all of the parties involved in the project to ensure that all parties are on the same page and that the changes are agreed upon. This includes the owner, contractor, and architect.

Once the changes have been agreed upon, the change order must be prepared. This includes a detailed description of the changes and any additional costs that may be required. It is important to ensure that all of the changes are accurately documented in the change order to avoid any potential issues in the future.

Once the change order is prepared, it must be reviewed and approved by all of the parties involved in the project. Once the change order has been approved, it is then signed by all of the parties involved. This helps to ensure that all of the changes are documented and that all parties are in agreement with the changes.

The Importance of Tracking Change Orders

Once a change order has been signed, it is important to track the changes that have been made. This includes tracking the changes to the project scope, timeline, and budget. Tracking the changes is important to ensure that the project is completed in an efficient and effective manner and to avoid any potential issues in the future.

Tracking the changes also helps to ensure that all parties involved in the project are aware of any changes that have been made. This helps to prevent any potential disputes between the owner, contractor, and architect in the future. Finally, tracking the changes also helps to ensure that the project is completed within the agreed-upon timeline and budget.

How to Effectively Manage Change Orders

Once a change order has been signed, it is important to manage the changes effectively. This includes tracking the changes and ensuring that all parties involved in the project are aware of the changes. It is also important to ensure that the changes are properly documented and that the project is completed in an efficient and effective manner.

In order to effectively manage change orders, it is important to have a system in place to track the changes. This system should include a detailed description of the changes, any additional costs that may be required, and the timeline for the project. This will help to ensure that all of the changes are properly tracked and that the project is completed on time and within budget.

It is also important to communicate regularly with all of the parties involved in the project. This includes the owner, contractor, and architect. This will help to ensure that all parties are aware of the changes and are in agreement with the changes.

Tips for Effective Negotiation of Change Orders

When it comes to negotiating a change order, it is important to be prepared. It is important to understand the project scope, timeline, and budget and to be aware of any changes that may need to be made. This will help to ensure that the change order is negotiated in an efficient and effective manner.

It is also important to be aware of any additional costs that may be required for the project. This includes materials and services that may be necessary for the project. By understanding the additional costs, it is possible to negotiate a better price for the project.

Finally, it is important to be aware of any potential issues that may arise due to the change order. This includes any potential delays in the project timeline or any additional costs that may be required due to the changes. By being aware of any potential issues, it is possible to address them before they become an issue.

Best Practices for Change Order Documentation

When it comes to documenting change orders, it is important to ensure that all of the changes are accurately documented. This includes a detailed description of the changes, any additional costs that may be required, and the timeline for the project. It is also important to ensure that all of the parties involved in the project sign the change order to ensure that all parties are aware of and in agreement with the changes.

It is also important to ensure that all of the changes are tracked and documented. This includes tracking the changes to the project scope, timeline, and budget. This will help to ensure that all changes are tracked and that the project is completed in an efficient and effective manner.

Finally, it is important to ensure that all of the documents related to the change order are stored in a secure location. This includes the change order itself and any other documents related to the project. This will help to ensure that the documents are secure and that the project is completed in an efficient and effective manner.

Here at Synergy Builders we like to use DocuSign for all of the documents that way each party receives a signed copy of the documents. In addition we also send digital invoices to ensure you can keep track of your financial statements of what you have paid and what is remaining.

Conclusion

Change orders are an essential part of any project, and it is important to understand the process of ordering a change and managing it effectively. By understanding the process of ordering a change and managing it effectively, it is possible to ensure that the project is completed in an efficient and effective manner and that all parties involved in the project are aware of and in agreement with the changes. When you are looking to get started with your project, whether it be a commercial building, bathroom remodel, or whole house remodel, it is important to discuss the possibilities of changes that may occur. It is very important to have the additional finances available for the unexpected changes that may occur during the project. The last thing a contractor and customer want are to have a conflict over finances. 

If you are looking to get started on your project soon, give us a call and we will be happy to discuss the ins and outs of your job!

Change orders can also provide a way to negotiate a better price for the project and to stay on track with the project timeline and budget. By understanding the process of ordering a change and managing it effectively, it is possible to ensure that the project is completed on time and within budget.

Finally, it is important to ensure that all of the changes are properly documented and that the documents are stored in a secure location. This will help to ensure that the documents are secure and that the project is completed in an efficient and effective manner.