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Change orders need to have a breakdown of the scope with ideally labor and materials broken out. In some cases, the client wants to see backup of the costs as well and even labor rates. Be prepared to provide the support documentation that will be needed to justify the change order.

What is a change order? A change order is a written amendment to an existing contract after the effective date that alters the work, the contract sum, or the contract time. While contracts are intended to be the final word for projects, sometimes things need to change.

The difference between a site instruction vs. change order is found in the way they are communicated. Where change orders are written documents of the change signed by the general contractor and the subcontractor, a site instruction is purely given by the GC.

In short, a change order form is an amendment to the construction plan or contract. It changes the scope of work and therefore needs approval before initiation because it will likely result in an increase in the budget. Therefore, the change order form must be approved by both the owner and contractor.

Regardless of who initiates a potential change, the first step is for the project owner and contractor to discuss what the change is, why it's being requested and how it will impact the project's cost and timeline. Everyone needs to walk away on the same page. Lay the groundwork.

As an example of a change order, say a construction project expands to require plumbing that was not previously necessary. In that case, you may need to hire a subcontractor, but change order doesn't cover new subcontractors. Instead, the original contract may need to be renegotiated to permit subcontracting.