📊 Estimating & BusinessModerateAlso: CO, extra work order, project modification
Change Order (Business)
Definition
A change order is a written amendment to the original contract documenting changes to scope, materials, timeline, or price. Both parties must sign before additional work begins.
Common Questions
Real-World Example
CRM Services discovers the garage ceiling also needs painting — a change order is written and approved before the work begins.
Why It Matters
Change orders are a critical business protection tool.
Related Terms
📊
Scope of Work
📊A scope of work is a written document defining exactly what work will be performed, what materials w...
Contract Types: T&M vs Fixed Price
📊Time and materials (T&M) charges based on actual hours and materials used. Fixed price charges a sin...
Job Costing
Job costing tracks all expenses for a specific project — labor, materials, subs, and overhead — to d...