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BETTESWORTHConstruction

Construction Change Orders: What to Document Before Work Begins

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A construction change order should identify the changed work, state how the contract price and schedule will change, and show who authorized the change. To prevent a later cost dispute, attach the proposal and supporting records the contract requires, and make clear whether the parties have agreed on the adjustment or are using an interim written directive. The executed contract and applicable law control the required form, approvals, notices, and pricing rules; there is no universal change-order form or deadline.

What should a construction change order include?

A useful change order lets someone who was not part of the conversation reconstruct what changed, why the price changed, what happened to the schedule, and whether the right people approved it. Treat the document as a contract record, not just a price quote or a one-line instruction.

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At minimum, include the project and contract identifiers, a precise description of the changed work, the price adjustment and its basis, the effect on contract time, and the required authorizations. Attach the proposal, drawings, cost detail, correspondence, and other documentation required by the agreement. The AIA A104-2017 sample, for example, identifies the change in the Work, the adjustment to the Contract Sum, and the adjustment to the Contract Time as core terms. That is an example from a particular form and edition, not a universal rule for every project.

Dispute-prevention checklist

  • Identification: Project name, owner, contractor, base-contract identifier, change-order number, date, and any related proposal, directive, or earlier change.
  • Scope: Added, deleted, or revised work; the affected locations; and applicable drawing and specification references.
  • Price: The amount or calculation method, whether the contract sum increases, decreases, or remains unchanged, and supporting detail required by the contract.
  • Time: Days added or deducted, affected milestones when relevant, or an explicit statement that contract time does not change.
  • Authority: Required signatories, approval authority, effective date, and any notice or reservation language required by the agreement.
  • Attachments: Proposal, relevant plans, quantity and labor/material/equipment detail, correspondence, notices, and time-and-material records when applicable.

Do not leave a material term to be inferred from a meeting, a proposal title, or a later invoice. If an item does not apply, say so clearly where doing so helps avoid ambiguity—for example, “Contract Time: no change”—rather than leaving a blank that could be read as overlooked.

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How do I describe the changed work clearly?

Describe the scope so the parties can distinguish the changed work from the original contract work. Identify what is being added, removed, substituted, or revised, and connect the description to the affected location and contract documents.

A concise scope entry might say: “At Level 2, replace the specified wall finish in Rooms 201–204 with the finish identified in revised finish schedule A-602, dated [date]. Delete the previously specified finish in those rooms.” The example shows the kind of detail to capture; the actual change must match the project documents. Avoid relying on vague phrases such as “miscellaneous revisions” or “per discussion” without identifying the relevant direction and materials.

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Include the drawing or specification number and revision date where available. If the change depends on an assumption—such as access, quantities, existing conditions, or work by another trade—write it down and state whether it is part of the agreed scope or still needs resolution. Where the change affects only part of a larger drawing or scope, identify that boundary to reduce the risk that one party reads the change more broadly than the other.

Keep the narrative and attachments consistent. If the proposal describes one scope but a referenced drawing shows another, resolve the conflict before approval or identify in the change document which description governs, if the contract permits that approach. The AIA guide to managing construction administration likewise treats a clear description of the work and its cost and time adjustments as central to administering a change.

How should the change-order price be documented?

State the agreed amount or the method for calculating it, and make clear whether the contract sum goes up, goes down, or stays the same. The supporting breakdown should follow the contract’s pricing terms and the method being used; there is no universal markup or cost formula.

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When the contract or pricing method calls for it, show enough detail to trace the total: quantities, labor, materials, equipment, applicable unit prices, and permitted markups. For unit-price work, a detailed, itemized breakdown can make the calculation easier to verify; Procore’s change-order guidance discusses unitized cost detail as a practical way to support this type of pricing. Use the actual contract requirements rather than treating any secondary guidance as a substitute for them.

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For each cost component, retain its source—for example, a quantity takeoff, labor calculation, supplier quote, equipment record, or contract unit price—when that substantiation is required or needed to explain the adjustment. Label whether a figure is agreed, estimated, or subject to reconciliation. A single lump sum may be appropriate when the contract allows it and the parties agree, but a bare total can be difficult to assess later if the scope or pricing basis is contested.

Address related overhead, profit, taxes, allowances, and other costs only as the agreement provides. Do not assume a particular markup applies to every project or that a proposal’s calculation automatically changes the contract. If the change has no price effect, state that expressly. If only part of the amount is agreed, identify what is resolved and what remains open under the contract’s process.

How do I record the schedule impact?

State the effect on contract time separately from the price. Specify the number of days added or deducted, identify affected milestones where appropriate, or say explicitly that contract time does not change.

A price agreement alone does not explain whether a change affects completion dates. Likewise, a statement that the work will be done “as soon as possible” does not establish a contract-time adjustment. If the schedule effect is still being assessed, identify that status and follow the agreement’s procedure for resolving it. Record supporting schedule information as the contract requires, particularly if the changed work affects sequencing or a milestone.

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The AIA A104-2017 sample treats the adjustment to contract time as a distinct change-order term. Its relevance is illustrative: check the form and amendments actually incorporated into your project rather than assuming that the sample’s wording or signature process governs.

Who must approve and sign the change?

Follow the approval path in the executed contract, including who may issue a change and whose signatures make it effective. A project participant’s ability to discuss or request work does not by itself establish authority to amend the contract.

For a project using the cited AIA A104-2017 sample, §13.1 says a written Change Order is signed by the Owner, Contractor, and Architect, while a written Construction Change Directive is signed by the Owner and Architect. The AIA A201-2017 text describes a Construction Change Directive as a written order prepared by the Architect and signed by the Owner and Architect that directs a change before agreement, if any, on an adjustment to the Contract Sum or Contract Time. These provisions are examples tied to particular AIA documents and editions; other contracts may set different procedures, and amendments may alter the standard language.

Federal procurement has its own authority rules. Under FAR Part 43, only contracting officers acting within their authority can execute federal contract modifications. The cited FAR page identifies FAC 2026-01, effective March 13, 2026. That federal rule should not be generalized to private construction contracts, which depend on their own agreement and applicable law.

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What if the work must start before the price is final?

Use the written change-direction process allowed by the contract; do not treat an unresolved price as if it were already agreed. If the contract permits an interim directive, document the direction, the scope, the approval authority, and the process for resolving the price and time adjustment.

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The AIA A201-2017 provision cited above illustrates a Construction Change Directive that can direct work before agreement on an adjustment. It is an interim mechanism, not a reason to leave cost or time open indefinitely. Keep contemporaneous records of the work and pursue agreement under the contract’s procedure.

The Federal Transit Administration’s contract-administration guidance favors agreeing on price before work proceeds where practicable. Where work must proceed before agreement, it calls for time-and-material records. In practical terms, retain the dated direction, labor and material information, equipment records, relevant correspondence, and schedule information that the agreement requires or that substantiates the adjustment. Confirm what notice and record format the contract calls for rather than assuming the FTA guidance controls a private project.

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How should the change-order file be kept?

Keep the signed modification or written direction with the proposal and the evidence that explains its scope, cost, and schedule effect. A complete file makes it easier to establish which version was approved and what the parties understood when the work was authorized.

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Depending on the contract and the change, that file may include the change-order document, proposal and itemized cost detail, relevant drawings and specifications, notices, correspondence, approvals, and contemporaneous time-and-material records. Keep any revised or superseded documents identifiable by date or revision so a reviewer can tell which documents were current. FAR provisions for federal contracting address modification documentation and definitization timing; those provisions are useful context for federal contracts, not a universal retention rule for all projects. See FAR Subpart 43.2 for the federal change-order provisions.

A log can help track dates, status, and references to supporting records, but it does not replace an approved modification, the project’s contract-management process, or the records required by the agreement. Reconcile an interim estimate and finalize any unresolved adjustment promptly using the contract’s procedure.

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What should I check before signing?

Before approving, confirm that the document describes the intended scope, identifies the correct contract and related proposal, and states the price and time consequences clearly. Then verify that the required approvers have authority and that the attachments support the stated adjustment.

  1. Match the scope: Check the narrative against the referenced drawings, specifications, locations, and proposal.
  2. Verify the arithmetic and basis: Confirm the total follows the contract’s pricing method and that relevant quantities, rates, and permitted cost components are explained.
  3. Resolve the time term: Record added or deducted days, affected milestones, or no change; do not leave the schedule consequence implicit.
  4. Check authority and procedure: Follow the executed agreement for signatories, required notices, effective date, and any reservation language.
  5. Preserve the record: Attach the supporting documents and retain the written approval or directive in the project file.

If a term remains unresolved, do not make the document appear more final than it is. Identify what is agreed and what is not, then use the contract’s applicable mechanism for direction, pricing, time, and notices. Because notice deadlines, waiver language, approval authority, and pricing rules vary, have the project team confirm the executed contract and applicable law when the consequences are material.

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Frequently Asked Questions

Is an email enough to approve a construction change order?

It depends on the executed agreement, the sender’s authority, and any required form or signature method. Do not assume that an email discussion or an attached proposal amends the contract; check the agreement’s written-approval and notice provisions and retain the complete exchange.

Can a contractor proceed while a change-order amount is disputed?

That depends on the contract’s direction and dispute procedures, and on who has authority to issue an instruction. If work is directed before price agreement under an allowed interim process, document the instruction and keep the cost and time records needed to support later reconciliation.

Does a change order always need an architect’s signature?

No universal signatory set applies to every project. Some AIA sample terms include the architect for specified change documents, but the controlling parties and approval path come from the executed contract, including any amendments.

How long should change-order records be retained?

The cited materials do not establish one retention period for every construction project. Follow the contract, applicable law, and any project-specific recordkeeping requirements, and preserve the file for as long as those rules require.

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