Board governance glossary
Definition
What is Change order?
A change order is a written amendment to a construction contract that changes the agreed scope, price, schedule, or other project terms.
What it means in practice
Change orders are used when the owner requests different work, field conditions require a revision, design documents change, or the contractor identifies work outside the original scope. A complete change order explains the reason, identifies the contract provisions affected, and states the cost and schedule impact.
Boards reduce disputes by requiring written approval before changed work begins, except where a documented emergency procedure applies. The approval should follow the association’s spending authority and governance rules.
Key points for boards
- Tie every change order to the original contract and a specific reason.
- State both the price impact and any schedule impact.
- Confirm who has authority to approve the change before work proceeds.
- Keep proposals, approvals, and supporting correspondence together.