Change Order (Contract)
The signed document that changes a contract's scope, price, or time.
Quick Answer
A change order is a written amendment to a construction contract that changes the scope of work, the contract sum, the contract time, or a combination. Under standard forms like AIA A201, it is signed by the owner, contractor, and architect. It is the formal mechanism for adding, deleting, or modifying work after the contract is signed.
The Full Picture
Change orders exist because no construction contract survives unchanged. Owners revise programs, designers fix errors, and site conditions differ from what was expected. The changes clause lets the owner direct changes within the general scope of the contract without renegotiating the whole agreement, and the change order records the agreed adjustment.
Mechanically, most changes start with a request: an owner-issued proposal request, a contractor change request, or an RFI response that alters scope. The contractor prices the change with labor, material, equipment, subcontractor costs, and the markup the contract allows, along with any time impact. Once agreed, the parties sign the change order and the contract sum and schedule are updated. Under AIA A201, if the parties cannot agree on price, the owner can issue a construction change directive so work proceeds while the cost is resolved.
Federal contracts follow the same logic. FAR 43.101 defines a change order as a written order signed by the contracting officer directing a change the changes clause authorizes without the contractor's consent, and FAR 52.243-4 provides for an equitable adjustment in price and time.
In preconstruction, change orders are both a risk to price and a signal of document quality. Owners carry contingency for them, and contractors review the contract's markup limits, notice deadlines, and pricing rules before bidding. Gaps and conflicts left in the bid documents become change orders later, so a precon team that catches them early reduces the change-order volume on the job.
A healthy change process is fast, documented, and priced consistently. An unhealthy one leaves pending changes unsigned for months, mixes approved and disputed work, and ends in a large claim at closeout.
Real Examples
Common Misconceptions
People assume: A change order only happens when work is added.
Actually: Change orders also delete work (a deductive change order), change the schedule without changing price, or modify how work is performed. Any agreed change to scope, sum, or time uses the same mechanism.
People assume: A verbal instruction from the owner is enough to get paid for extra work.
Actually: Most contracts require written change orders or directives and timely notice. Work done on verbal instructions can be hard to recover without the required paperwork.
Does MeltPlan Solve This?
Partially — adjacentPartially — MeltPlan handles drawing revision comparison, which is closely related to identifying change orders. Design Review flags what changed between drawing revisions and surfaces conflicts in the documents before bidding, so added scope can be tied to specific sheets. MeltPlan does not price, route, or track change orders through approval.
Compare drawing revisions to spot scope changes →Frequently Asked Questions
Who signs a change order?
Under AIA A201, the owner, contractor, and architect sign. On federal work, the contracting officer signs. Subcontract change orders are signed by the GC and the subcontractor.
What is the difference between a change order and a construction change directive?
A change order is an agreed amendment to scope, price, or time. A construction change directive lets the owner order the work to proceed when the parties have not yet agreed on the price or time adjustment.
How are change orders priced?
Usually by adding direct costs for labor, material, equipment, and subcontractors, plus the overhead and profit markup the contract allows. Some contracts use unit prices or time-and-materials for certain changes.
What causes change orders?
Owner-requested changes, design errors and omissions, differing site conditions, code or regulatory changes, and unforeseen conditions in existing buildings are the most common causes.
How does preconstruction reduce change orders?
By finding drawing conflicts, missing scope, and unclear specifications before contracts are signed, and by pricing the correct revision. Issues resolved during bidding do not become change orders during construction.