Change Orders are one of the most important tools used to manage change on a construction project.
At a glance, the term seems straightforward. A change occurs and a record is created. In practice, however, Change Orders play a much larger role in project controls and contract administration.
Construction projects rarely progress exactly as originally planned. Design revisions, unforeseen site conditions, client requests, and scope changes can all affect the work being carried out.
When these changes affect the contract, they need to be formally reviewed, approved, and documented. This is where Change Orders come into the process.
Although Change Orders are commonly discussed within software platforms such as Procore, they are not software features. They are part of a construction management process that has existed long before digital project management systems became common.
Understanding Change Orders starts with understanding how construction projects manage and document approved changes.
What Is a Change Order?
A Change Order is a formal amendment to a construction contract.
It records an approved change to the original scope of work.
The change may affect:
- Cost
- Schedule
- Scope
- Project requirements
Once approved, a Change Order becomes part of the project's contractual record.
In simple terms:
A Change Order is the official document that authorises a change to the contract.
Why Are Change Orders Needed?
Construction projects are planned long before work begins.
However, not everything can be predicted.
During a project, situations arise that require changes.
Examples include:
- Design revisions
- Unforeseen site conditions
- Client requests
- Errors or omissions in project documentation
- Regulatory requirements
- Material substitutions
When these situations affect cost, scope, or programme, they often require a Change Order.
Without proper documentation, disagreements can develop over:
- Who requested the change
- Who approved the change
- How much the change costs
- Whether additional time should be granted
Change Orders provide a formal record of those decisions.
A Simple Example
Imagine a building project where ceramic floor tiles have been specified throughout a reception area.
Partway through construction, the client decides they would prefer a higher-quality porcelain tile.
The new tile is more expensive and takes longer to procure.
The project team must consider:
- Additional material costs
- Additional labour costs
- Potential programme impacts
If the change is approved, a Change Order may be issued to update the contract accordingly.
What Information Does a Change Order Contain?
While formats vary between organisations, Change Orders typically include:
- Description of the change
- Reason for the change
- Cost impact
- Schedule impact
- Supporting documentation
- Approval information
The goal is to clearly document what has changed and how the project will be affected.
Common Reasons for Change Orders
Client Requested Changes
A client may decide they want something different after construction has already begun.
Examples include:
- Different finishes
- Additional rooms
- Revised layouts
- Additional equipment
These changes often result in additional cost and time.
Design Changes
Architects and engineers sometimes revise project information during construction.
Updated drawings or specifications may require additional work.
Unforeseen Site Conditions
Not everything can be discovered during design.
Examples include:
- Hidden services
- Ground conditions
- Structural issues
- Existing building conditions
These situations can require changes to the original plan.
Regulatory Requirements
Changes may also occur due to updated compliance requirements or authority requests.
How Do Change Orders Affect Construction Projects?
Change Orders can impact several areas of a project.
Cost
Additional work often results in additional cost.
Materials, labour, equipment, subcontractors, and overheads may all be affected.
Schedule
Some changes require additional time.
This can impact project milestones and completion dates.
Scope
The amount of work being performed may increase or decrease.
Documentation
Each approved change must be recorded and tracked correctly.
Proper documentation helps reduce confusion and disputes.
Change Orders and Construction Software
One thing that surprised me while learning construction technology was that software platforms don't create Change Orders.
They simply help manage them.
Whether you're using:
- Procore
- Autodesk Construction Cloud
- Other construction management systems
the underlying process remains largely the same.
The software provides a structured way to:
- Record changes
- Route approvals
- Track costs
- Maintain records
- Improve visibility
The process itself existed long before digital platforms.
What Is the Difference Between a Change Event and a Change Order?
This is one of the most common sources of confusion for new users.
A Change Event and a Change Order are not the same thing.
A Change Event tracks a potential change.
A Change Order records an approved change.
Think of a Change Event as an early warning.
Think of a Change Order as the formal decision.
Example
An RFI response identifies additional work that may be required.
The team creates a Change Event to track the possible impact.
At this stage, nothing has been approved.
After reviewing the costs and obtaining approvals, a Change Order may be issued.
The Change Order formally updates the contract.
Related Reading: 👉 What Is a Change Event? Explained in Plain English
Common Beginner Mistakes
Thinking Every Change Requires a Change Order
Not every issue results in a contractual change.
Some matters can be resolved without affecting cost, scope, or schedule.
Confusing Change Events with Change Orders
Many new users assume the terms are interchangeable.
They're not.
One tracks a potential change.
The other records an approved change.
Focusing on the Software Instead of the Process
Many people try to learn how to create a Change Order before understanding why it exists.
Understanding the process first makes the software much easier to learn.
Ignoring Documentation
Construction projects generate large amounts of information.
Supporting records are often just as important as the Change Order itself.
What Confused Me When Learning Change Orders
Initially, I assumed a Change Order simply meant additional work.
What I eventually realised was that the real purpose is contractual control.
A Change Order creates a formal record showing:
- What changed
- Why it changed
- Who approved it
- How it affects the project
Once I understood that, the process became much easier to follow.
Final Thoughts
A Change Order is one of the most important documents in construction project management.
It provides a structured way to manage approved changes to a contract.
While construction software makes the process easier to track, the concept itself has been part of the construction industry for decades.
My advice to anyone learning construction technology is simple:
Don't start by learning how to create a Change Order.
Start by understanding why Change Orders exist in the first place.
Once you understand the purpose behind the process, the software becomes much easier to understand.
