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Glossary · Term 023

Change order

A change order is a documented, authorized modification to a contract's scope, schedule, compensation, or other terms.

Definition

For a civil engineering firm, a change order records an agreed adjustment to the original contract, such as added survey work, revised design deliverables, a schedule extension, or a fee change. It commonly identifies the changed work, price or compensation method, timing, and required approvals. The contract determines who can authorize the change and what form is required. Firms may use signed amendments, task orders, or other written approvals, and they may track requested, submitted, approved, and billed changes separately. A client request or a consultant's estimate is not necessarily an authorized change order. Nor is every additional task automatically outside the original scope; the contract and project facts matter. Owners use change-order tracking to connect scope decisions with staffing, schedule, billing, and forecast updates. Federal contracting rules address modifications for covered contracts, but do not define every firm's private agreements. FAR Part 31

How owners use it

  • Record the request, scope impact, fee, schedule effect, approver, and approval status in the project file.
  • Keep requested and approved changes distinct in backlog and revenue forecasts.
  • Use written authorization procedures that match the client contract before assigning changed work.
  • Example: A $90,000 design contract receives an approved $12,000 survey addition; $90,000 + $12,000 = $102,000 revised contract value.
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