Change order

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In project management, a change order is a component of the change management process, whereby changes from the agreed upon scope (limitations) of the project's work require a mutual agreement.

Change orders are common to most projects, and very common with large projects. After the original scope (or contract) is formed, complete with the total price to be paid and the specific work to be completed, a client may decide that the original plans do not best represent his definition for the finished project. Accordingly, the client will suggest an alternate approach.

Common causes for change orders to be created are:

- The project's work was incorrectly estimated
- The customer or project team discovers obstacles or possible efficiencies that require them to deviate from the original plan
- The customer or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project
- During the course of the project, additional features or options are perceived and requested.

A project manager then typically generates a change order that describes the new work to be done (or not done in some cases), and the price to be paid for this new work. Once this change order is submitted and approved it generally serves to alter the original contract such that the change order now becomes part of the contract.

A Change Order is work that is added to or deleted from the original scope of work of a contract, which alters the original contract amount or completion date.

[edit] See also

• Business management
• Project management
• Parkinson's Law
• Peter Principle

[edit] External links

• Project Management Institute
• dotPM.com. A blog about change orders

[edit] References

• Kerzner, Harold. 2003. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. John Wiley & Sons, Hoboken, New Jersey.
• Verzuh, Eric. 1999. The Fast Forward MBA in Project Management. John Wiley & Sons, Hoboken, New Jersey. [1], [2]