Change Order
A change order is a written agreement that modifies the original construction contract by adding, deleting, or altering work scope, materials, or timeline. It typically includes adjustments to the contract price and completion date. Both the contractor and property owner must approve and sign the change order for it to be legally binding.
Example
“The contractor submitted a change order for an additional $5,000 when the homeowner decided to upgrade from standard to granite countertops mid-construction.”
Memory Tip
Think "change the order" - when you want to modify what was originally ordered in construction.
Why It Matters
Change orders protect both parties by documenting modifications to avoid disputes over costs and scope creep. They ensure that any additional work or materials are properly authorized and priced before implementation.
Common Misconception
Many homeowners believe verbal agreements for construction changes are sufficient, but only written change orders provide legal protection.
In Practice
During a kitchen renovation, if a homeowner decides to upgrade from laminate to granite countertops, the contractor would issue a change order detailing the additional $2,000 cost and two-day timeline extension. Both parties sign before the upgraded work begins.
Etymology
From the construction industry's need to formally document alterations to original plans, combining "change" (from Old French "changier") with "order" (from Latin "ordo" meaning arrangement).
Common Misspellings
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