A change order is a document that spells out changes in the construction scope, design, site conditions, or even the project schedule. In many instances, the construction contract dictates the change order process. The contract should provide specific guidelines on how to manage and process the change order. Change orders will not only alter the project scope and schedule, but they can also affect your liability and put your payment at risk.
A change order is also referred as a change directive, extra work, or work request directive. The project owner can request a change, or a contractor can submit a change order due to differing site conditions when compared to the original bid assumptions. [from levelset.com]
A change order is needed when work is added to or deleted from the Contract.
Add a change order to a project
Open the Project form and select a project: Toolbar > Project icon
Select the Contract tab and Change Order sub-tab.
Right-click in the gray space and select Add.
Enter a Description for the Change Order and select OK.
If you have any notifications set to email when a Change Order happens, you'll see that appear here. Click Yes or No depending on your preference.
Now you'll see the new Change Order appear below.
Edit a change order
Double-click the Entry to bring up the Change Order window and edit fields and options.
Adjust Sent, Released, and Approved Dates by clicking on the icon and adding the date.
Select the Budget tab to add Labor and Materials (sub-tabs).
Right-click in the gray space to bring up options menu.
Edit amount fields by selecting and typing directly.
Click Save to save the Change Order settings.
You'll see the updated Change Order settings displayed in the entry.
You'll also need to right-click to Approve the Order before the it will show up as Approved on the Change Orders box in Contract.