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← Glossary·Contracts

Change Order

also called CO, contract change order

A change order is a formal written amendment to the construction contract that adjusts scope, price, or schedule after the contract is signed. Both owner and contractor must sign.

Change orders document changes that arise during construction: owner-requested upgrades, unforeseen conditions (rock encountered in excavation, unmarked utilities), design errors, or scope clarifications.

Pricing a change order: trade unit prices × quantity changes, plus markup for overhead and profit. Most contracts specify markup percentages for change-order work (e.g. 10% O&P on labor, 15% on subcontract work, 5% on materials).

Document every change order with its own quantity takeoff. Reference the original bid item, the change, and the difference. Keep change-order tickets with the project file.

Related terms
  • RFI (Request for Information)
  • Addendum
  • Schedule of Values
  • Markup
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