What is a Change Order and who pays for it?

In construction, a change order is a component of the process whereby changes in the Scope of Work agreed to by the Owner, Contractor and Architect are implemented. A Change Order is work that is added to or deleted from the original scope of work of a contract, which alters the original contract amount or completion date. The most common causes for change orders to be created are:

• The customer or contractor discovers obstacles or possible efficiencies that require them to deviate from the original plan
• During the course of the project, additional features or options are perceived and requested

The contractor then typically generates a change order that describes the new work to be done, and the price to be paid for this new work. Once this change order is submitted and approved, it generally serves to alter the original contract such that the change order now becomes part of the contract.