Change Order

Definition: In project management, a change order is a component of the change management process, whereby changes from the agreed upon scope of the project’s work require a mutual agreement.

What This Means: Managing a major project requires juggling the contractual obligations and the practical implementation realities. When these diverge, the change order ensures all parties mutually understand what the new requirements are and how any costs associated with the change are to be covered. Even when dollars are not involved, a formal change order documenting the new deliverables ensures the project management and final product will be acceptable—or at least accepted.

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