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Business Terms

Change Order

Definition

A formal document modifying the scope, timeline, or cost of an existing contract.

Overview

Change orders document agreed-upon changes to a project. They protect both parties by ensuring changes are acknowledged and priced appropriately.

Example

A change order adds 5 new website pages for an additional $2,500 and extends the deadline by one week.

Best Practices

Use for any scope changes. Document what's changing, cost impact, and timeline impact.

Common Mistakes to Avoid

Verbal agreements without documentation

Not pricing changes

Delayed change orders

Related Terms

Frequently Asked Questions

When should I use a change order?

Any time the scope, timeline, or cost changes from the original agreement.

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