Change Order
A formal document modifying the original project scope, timeline, or cost.
Definition
A change order is a formal agreement to modify an existing contract or statement of work. It documents what's changing (scope, timeline, deliverables), why, and any price adjustment. Change orders protect both parties by ensuring scope changes are acknowledged and properly compensated.
Effective change order processes include: documenting the requested change, assessing impact on timeline and cost, presenting the change order for client approval, and not beginning work until approved. This prevents the "I thought that was included" disputes that damage relationships and profitability.
Why It Matters
Change orders are your defense against scope creep. When clients request additions, a change order process transforms "can you also add..." into a professional discussion of trade-offs. Clients who understand changes have costs are more thoughtful about requests.
Change orders also protect client relationships. Rather than building resentment over unpaid work, or surprising clients with bigger-than-expected invoices, change orders surface cost implications upfront. This transparency builds trust.
Examples
- 1
A client requests additional features mid-project; the agency provides a change order showing 20 additional hours at $150/hour and 2-week timeline extension.
- 2
A contractor discovers unexpected site conditions requiring additional work and submits a change order before proceeding.
- 3
A software project has a standing agreement: any request taking more than 4 hours triggers a change order discussion.
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