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Blog14 July 20269 min read

What Is A Change Order In Construction And How Does It Work?

A change order construction process helps construction businesses document project changes, maintain accurate records, and keep budgets and schedules aligned. Effective construction change order management becomes easier with connected systems like Bouwflow, allowing teams to manage approvals, documentation, and project updates from one centralized platform.

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What Is A Change Order In Construction And How Does It Work?

Construction projects rarely follow the original plan from start to end. Design updates, client requests, unexpected site conditions, and material availability can all require changes after work has already begun. This is where a change order construction process becomes crucial. Instead of making informed decisions, project teams document every approved change to maintain clarity across budgets, schedules, and project responsibilities. 

A structured process also helps contractors and clients stay aligned throughout the project. Today, many companies use connected construction management systems such as Bouwflow to keep project documentation, approvals, and operational workflows organized whenever changes occur. 

What Is A Change Order In Construction?

A change order is a formal document used to modify the original construction contract after work has started. It records any approved change that affects the project’s scope, cost, schedule, materials, or construction activities. 

Rather than depending on verbal discussions or email conversations, a change order creates an official record that all parties can reference throughout the project. This simply helps maintain transparency while reducing the possibility of disputes later. 

A typical change order may include:

  • A description of the requested change

  • The reason for the modification

  • Any changes to project costs

  • Revised project timelines

  • Updated scope of work

  • Approval from the required stakeholders

The approved change request will be incorporated into the documentation of the project. After that, teams move forward on the basis of the new agreement instead of the original contract.

Many construction firms handle several changes to projects at various levels of work. It is as crucial to organize the documents as it is to approve them. Many businesses use construction project management software to keep project documentation, approvals, and project updates organized throughout the construction lifecycle. This is one of the reasons why many construction firms opt for document management solutions like Bouwflow.

Why Is a Change Order Important?

Construction projects include many moving parts, making changes almost unavoidable. A documented change order ensures that every approved modification is clearly recorded before work continues. 

It helps contractors, clients, and project teams understand updated expenses, revised timelines, and new project needs. More importantly, it creates a trusted record that supports accountability throughout the project. When changes follow a structured process, companies can continue work with greater confidence and fewer misunderstandings. 

How Does a Change Order Work?

Every project follows its own approval process. However, most change orders in construction follow the same workflow. Every step ensures the requested change is reviewed, documented, and approved before it becomes part of the project. 

Step 1: Identify The Need For A Change

The process begins when someone identifies a change that affects the original project plan. This may result from revised client requirements, design updates, unexpected site conditions, material availability, or regulatory requirements.

Before any work changes, the project team first determines whether the request affects the project scope, timeline, budget, or construction activities.

Step 2: Prepare The Change Order Request

Once the change has been confirmed, it is documented through a formal request. This document explains what needs to change, why the modification is required, and how it will affect the project.

These supporting documents may include revised drawings, specifications, quotations, or estimates. Using quotation and invoicing software helps contractors maintain accurate records when project changes affect pricing or project scope. A properly prepared request eliminates any confusion that may arise during the approval procedure.

Step 3: Review Project Impact

Prior to any changes being approved, the project team takes great care in assessing the proposed change. The assessment looks at how the change will affect costs, labor, materials, timelines, and available resources of the project.

Knowing the complete effect allows all parties to make informed decisions prior to proceeding.

Step 4: Obtain Stakeholder Approval

Once the review process is completed, the request is then sent out for approval to the relevant parties as determined by the nature of the project, which may include the client, contractor, architect, consultant, or project manager.

Any work associated with the requested change can only start once approval has been obtained. This is done to make sure that everyone is on board with the modified scope and costs.

Step 5: Update Project Documentation

Once approved, the revised information becomes part of the project's official records. Contracts, schedules, budgets, drawings, and related documents should all reflect the approved changes.

Construction management systems like Bouwflow make the entire process easier by ensuring that all approvals, project documents, quotations, and operational documents are linked together in one place. The advantage here is that everything can be accessed without looking into several different files. 

Step 6: Implement And Monitor The Change

Once the document is amended, work can proceed as per the new requirements set by the project. The project manager keeps track of the amendments that have been made to ensure that they are done properly.

Following a proper procedure ensures that the change orders in the construction process are well-organized, effective in communication among the project team members, and well-documented at all times.

What Can Trigger A Change Order?

A change order is not created without a reason. It usually reflects a project change that affects the original agreement. Some changes are planned, while others arise unexpectedly as work progresses. Regardless of the reason, every construction change order should be properly documented before the revised work begins. 

  • Client Requests

Clients may request additional features, design modifications, or layout changes after construction has started. While these updates can improve the final outcome, they can affect project costs, timelines, or resource requirements. 

  • Design Revisions

Architects and engineers sometimes revise drawings or technical specifications during the project. These revisions may need contractors to adjust the scope of work, making a formal change order necessary. 

  • Unexpected Site Conditions

Not every site condition is visible before construction begins. Hidden utilities, unstable ground, or structural issues may only become apparent during excavation or construction. Identifying these conditions often requires changes to the original project plan. 

  • Material Or Product Changes

Construction projects occasionally face material shortages or discontinued products. In these situations, alternative materials may need approval before work continues. Recording these substitutions helps maintain accurate project documentation. 

  • Regulatory or Safety Requirements

Building regulations, inspection requirements, or updates to safety standards may require project modifications. A documented change order makes sure these adjustments are approved and reflected in the project’s official records. 

Although every project is different, handling these situations through a structured process helps reduce confusion and keeps everyone working from the same information. 

Managing Change Orders Effectively

Creating a change order is only the beginning. To keep a project on track, every approved change should be recorded, communicated, and reflected across project documents. A structured construction change order management process helps teams stay aligned while reducing delays and confusion. 

To manage change orders effectively, construction businesses should: 

1. Document any approved change - Update the new scope, new cost estimate, changes in the schedule, and other related documentation.

2. Track approval process - Make sure that the necessary parties have reviewed and approved the request.

3. Update project records: Update the contract, schedule, plans, budget, and quotations to keep everyone up to date.

4. Communicate with all teams  - Share approved changes with contractors, subcontractors, suppliers, and project managers to avoid misunderstandings. 

5. Maintain a complete history – Keep previous and current versions of project documents for future reference and accountability.

Managing these activities manually becomes as tough as projects grow. This is why many construction businesses use Bouwflow to centralize approvals, documentation, quotations, and project records. Keeping everything aligned helps the team access the latest information while maintaining a clear history of every approved project change. 

How Construction Software Simplifies Change Orders

Managing project changes manually can quickly become time-consuming. As the number of approvals and project documents increases, keeping every record updated becomes more challenging. A connected construction management system helps simplify this process by ensuring project information remains organized and accessible. 

Instead of going through emails or multiple folders, teams can manage change order construction activities from one place. This improves visibility and helps everyone work with the latest project information. 

Some of the biggest benefits include:

  • Centralized Documentation: The contracts, quotations, drawings, and change orders are all linked in a single document.

  • Approval process gets quicker: The approval process for the request can be done quickly without any delay.

  • Project records become up-to-date: Any changes in budget, schedule, and other project files can be updated easily.

  • Project visibility improves: The approved changes are monitored by the manager, who can know their effect on the whole project. This level of visibility is similar to how companies monitor construction performance in real time using connected ERP systems.

  • Collaboration becomes easier: Project details are accessible to all the office team, site team, contractor, and client.

Construction companies often use solutions such as Bouwflow to support this process. By connecting project documentation, approvals, quotations, and operational workflows, our solution helps the team spend less time managing paperwork. They can simply invest more time delivering projects successfully. 

Final Thoughts

At the end, project changes are a normal part of construction. What matters most is how these changes are managed after they are addressed. A clear process simply helps companies document updates, obtain approvals, and keep project information accurate from start to end. 

An effective construction change order management process also improves communication between contractors, clients, and project teams. When everyone works from the latest project records, decisions become clearer, and project execution becomes more efficient. 

Construction management systems like Bouwflow can facilitate this by creating links between authorizations, quotes, project data, and processes in a single system. As projects grow in complexity, a system is very useful to companies when dealing with change while ensuring that the projects stay on schedule.

Frequently Asked Questions

What is a change order in construction?

It is a formal record of the approved changes made to the initial construction contract, including changes to the scope of work, cost, or schedule.

Who can make a change order request?

A change order can be requested by a client, contractor, architect, engineer, or project manager whenever changes in the initial agreement are needed.

Is there an impact of a change order on the project budget?

Yes. The approved changes could add or deduct costs from the project budget based on the nature of the changes.

Why do change orders need to be properly documented?

Good documentation will create a record of the approved changes to prevent any misunderstandings and keep project records up to date.

How can construction software help with change orders?

Construction software allows you to centralize approvals, documentation, quotations, and project records in one place.

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