1. Identify the Need for Change:

What triggers it? A change order can arise from various factors, such as:

• Client requests (e.g., adding a feature, changing a material).
• Unexpected site conditions (e.g., encountering unforeseen utilities, unstable soil).
• Design conflicts or errors in drawings/specifications.
• Regulatory changes.
• Material substitutions.
• Contractor or subcontractor proposals for efficiency or improvement.

Document immediately: As soon as an issue or request for change is identified, record it. Don’t delay, as this can lead to confusion and missed details. Be specific, including the exact location, date, time, and parties involved.

2. Notify Relevant Stakeholders:

• Formally inform the project owner, architect, consultants, internal teams, and affected subcontractors.
• Use clear and concise communication, preferably in writing (email or construction management software), to explain the issue and its potential impact.

3. Assess Impact (Scope, Time, and Cost):
Before drafting the change order, thoroughly evaluate how the proposed change will affect the project’s:

• Scope: What work is being added, removed, or modified?
• Timeline: How many days will be added or removed from the schedule, and how does this affect critical path milestones or the overall completion date?
• Cost: What are the direct and indirect costs associated with the change? This includes labor, materials, equipment, subcontractor quotes, overhead, profit, taxes, and any other associated expenses..

Involve estimators, planners, and other relevant team members to ensure accurate assessment

4. Prepare the Change Order Documentation:
Use a standardized change order template if available, or create a detailed document that includes:

• Project Identifying Information: Project name, address, contract number, change order number, date of submission.
• Parties Involved: Names and contact information for the project owner, general contractor, and architect/engineer.
• Clear Description of the Change: Explain precisely what is being added, removed, or modified. Reference relevant original drawings, specifications, or contract clauses.
• Reason for the Change: Clearly state why the change is necessary (e.g., owner request, unforeseen condition, design clarification).
• Detailed Cost Breakdown: Itemize labor, materials, equipment, subcontractor costs, overhead, profit, and taxes. Be transparent about how costs were calculated.
• Time Impact: State the number of days added or removed and the new project completion date or affected milestone dates.
• Supporting Documentation: Attach all relevant evidence, such as photos, marked-up drawings, RFI responses, emails, supplier quotes, internal estimates, and field notes.

5. Route for Review and Approval:

• Submit the completed change order through formal channels (e.g., project management software, email).
• Ensure all required parties (owner, architect, etc.) receive the documentation for review.
• Allow time for discussion and negotiation. Be prepared to clarify details and justify your proposal with objective data.
• Crucially, wait for written approval before proceeding with any work related to the change. Verbal approvals can lead to disputes.

6. Update Project Records and Contract Documents:

• Once approved, formally log the change order.
• Update the contract sum, project schedule, budget tools, and procurement schedules to reflect the revised scope.
• Ensure all project systems are synced with the new information.

7. Implement the Approved Change:

• Communicate the approved change to all site teams, subcontractors, and suppliers.
• Ensure everyone understands their revised responsibilities and the new scope of work.
• Monitor the execution of the change and track its progress diligently.