Managing construction projects involves juggling multiple moving parts, deadlines, budgets, and expectations. Despite meticulous planning, changes during a project are almost inevitable. These changes can arise due to unforeseen circumstances, design adjustments, or client requests. A well-structured change order template is crucial for managing these modifications efficiently and maintaining clear communication between all parties involved. Without a proper change order, projects risk delays, cost overruns, and disputes.

In this article, tailored specifically for readers of Construction Logs, we will walk you through the eight essential sections your change order template must include to ensure project success, accountability, and transparency.

Understanding the Importance of a Change Order Template

Before diving into the sections, it’s vital to understand why a change order template is indispensable. A change order documents any deviation from the original construction contract or scope of work. It details the nature of the change, associated costs, and impacts on the schedule. This documentation protects both contractors and clients, reducing misunderstandings and providing a clear paper trail.

Using a standardized template simplifies the change management process, saves time, and ensures that no critical details are overlooked. Now, let’s explore the eight must-have sections every change order template should include.

1. Project and Contract Information

The first section of your change order template must clearly identify the project and contract details. This includes the project name, location, contract number, and the date the original contract was signed. Including this information ensures that the change order is correctly linked to the right project and contract, preventing confusion especially when managing multiple jobs simultaneously.

Accurate project identification also allows all parties to reference the change order easily and keeps records organized for future audits or disputes.

2. Change Order Number and Date

Every change order must have a unique identifier, such as a change order number, along with the date it was issued. This sequential numbering system helps track changes in chronological order and maintains an organized record of modifications. The date confirms when the change order was formally proposed or approved, which is important for timelines and contract compliance.

Without clear numbering and dating, it becomes challenging to monitor how many changes have occurred and their impact on the project.

3. Description of the Change

The heart of any change order template is a detailed description of the proposed change. This section should explicitly explain what the change entails, including alterations to materials, methods, or scope of work. The description must be thorough and precise, avoiding vague language that can cause confusion.

A well-written description helps all stakeholders understand exactly what is changing and why, reducing the risk of disagreements or assumptions.

4. Reason for the Change

It is essential to include the reason for the change to provide context and justification. This section outlines why the change is necessary, such as unforeseen site conditions, design revisions requested by the client, regulatory compliance, or material availability issues.

Documenting the reason promotes transparency and helps both parties evaluate the validity and urgency of the change. It can also serve as a reference in case of disputes.

5. Impact on Project Cost

One of the most critical parts of the change order template is the section detailing the financial impact. This should break down all additional costs or cost reductions associated with the change. It might include labor, materials, equipment, subcontractor fees, and any overhead or markup.

Providing a clear and itemized cost impact prevents surprises and allows clients or project managers to make informed decisions regarding budget adjustments.

6. Impact on Project Schedule

Alongside costs, the change order must address any effects on the project timeline. This section specifies if the change will extend the completion date, cause delays in certain phases, or require acceleration measures. It should also indicate the revised projected completion date.

Understanding the schedule impact enables better planning and resource allocation, ensuring the project stays on track despite modifications.

7. Approval and Signatures

A formal change order is only valid once it is reviewed and approved by authorized representatives from both parties—typically the contractor and the client or project manager. This section should include spaces for names, titles, signatures, and dates for all approvers.

Collecting approvals is essential to legally bind the change order and prevent unauthorized work or disputes over agreed terms.

8. Additional Notes or Attachments

Finally, the template should provide room for any additional notes or related documents that support the change order. This could include drawings, specifications, photographs, or correspondence that clarify the change further.

Including these attachments helps maintain thorough records and ensures everyone has access to all relevant information for the change.

Final Thoughts: Why You Need a Comprehensive Change Order Template

A robust change order template is a cornerstone for effective construction project management. Incorporating these eight must-have sections ensures that every change is clearly documented, justified, costed, and approved, preventing costly delays and disputes. At Construction Logs, we emphasize the value of having standardized templates that simplify workflows and protect your business interests.

By investing the time to implement a clear and comprehensive change order process, contractors and clients alike can navigate project changes with confidence and professionalism. Your journey begins on our homepage—check it out today.

FAQs About Change Order Templates

What is a change order template used for?

A change order template is used to formally document any modifications to the original construction contract, detailing the change’s scope, costs, and schedule impact.

How detailed should the description of the change be?

The description should be as detailed and clear as possible to avoid confusion and ensure all parties understand the exact nature of the change.

Can a change order reduce project costs?

Yes, change orders can reflect both increases and decreases in costs depending on the nature of the change.

Who needs to approve a change order?

Typically, both the contractor and the client or project manager must approve the change order through signatures.

Why is it important to track the impact on the schedule?

Tracking schedule impact helps manage project timelines, resource allocation, and expectations, minimizing delays.