What Are Change Orders and When Should You Use Them?

What Are Change Orders
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If you’ve ever managed a construction project, you know one thing’s certain: no job goes exactly as planned. Clients can change their minds at any time, site conditions often throw surprises, and there will always be times when blueprints just won’t tell the whole story. That’s why change orders exist. They are the lifeline that keeps a project from turning into chaos when plans shift midstream.

Let’s break down what construction change orders are, when they are necessary, and how to use them with confidence.

What’s a Change Order?

A change order is an official amendment to the original construction contract. It usually includes:

  • A description of the change (materials, scope, schedule, etc.)
  • Adjustments to the costs (either an increase, a decrease, or even none)
  • Any changes to the timeline

Since it’s a written record, it’s hard to forget, misinterpret, or even dispute later. Keep in mind, however, that despite being common in construction, change orders often cause disputes between contractors and clients. Handle them right, and you come off as professional and trustworthy. Manage them poorly and you risk facing unpaid work, strained relationships, and even legal headaches.

One way to enhance your skills in working with change orders is to take a premium NC General Contractor License Renewal course from a top-rated provider like RocketCert. While such a continuing education course won’t offer direct guidelines, it helps you understand the important rules and guidelines in construction. That way, you know what should and shouldn’t be part of a change order.

When Should You Use a Change Order?

Not every little hiccup will need a change order, but there are times when it’s necessary. Here are such times:

1. When the Client Changes Their Mind

This is the most important one. Say, for instance, a homeowner decides halfway through the project that they want hardwood floors instead of carpet. It could also be that they suddenly want to expand the kitchen island. Don’t just agree verbally. Get it in writing.

Before the client signs the order, ensure that you clearly explain how the change will affect the cost and schedule. Transparency is always important in such cases to prevent the “But you never told me!” conversations later.

2. When the Scope Expands Unexpectedly

Sometimes, projects come with surprises like hidden water damage behind the drywall, old wiring that’s not up to code, or even soil that won’t support the foundation. These aren’t optional upgrades: they are crucial fixes. Still, they’ve changed the scope and thus should be covered by a change order.

3. When Design or Regulations Require Adjustments

It’s not uncommon for architects to update drawings or for inspectors to flag various issues. You may even encounter situations where suppliers run out of a specified material. Such situations force adjustments that weren’t in the original contract. A change order will bring everyone on the same page and protect you legally.

4. When There Are Timeline Adjustments

As a general contractor, the one thing you will quickly realise is that weather delays, permit holdups, and client-driven changes are more common than you’d initially have expected. Of course, such adjustments have a chain effect that more often than not pushes the project completion date. You’ll want to document the new timeline in a change order, as this sets realistic expectations and protects you from penalty claims later.

Learn to Use Change Orders More Effectively

You may view construction change orders as a headache at first, but they are actually your best friend when it comes to protecting your time and reputation. They also give your clients peace of mind as they guarantee transparency and security.

RocketCert’s CE courses help you use change orders more effectively by teaching you more about your field and the updated laws that guide it. That way, you will understand better how and where to use change orders.

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