What Is a Change Order in Construction?

March 3, 2024

In construction, change orders occur when project plans and designs don’t exactly match up with the reality of the work environment once projects begin. This is inevitable given the nature of a long-term project. Changes can arise due to a variety of factors, such as new client requests, design errors or missteps that occurred during the planning and pre-construction phases, needing to make adjustments for price changes in fuel or materials, unforeseen utility conflicts and more.

The process of managing construction change orders requires a team effort. It is crucial that all stakeholders are informed and involved throughout the change order process. Having the proper tools in place, such as a change order template and project management software or takeoff and estimating software, can help streamline the process and mitigate costly mistakes. Providing a clear paper trail for all work is also essential to reduce disputes and protect all parties.

Change orders in construction are a necessary part of any project. However, it is important to understand the best practices for handling them in order to avoid costly disputes or even lawsuits. By following these tips, you can minimize the need for changes and improve your bottom line:

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