Contract change order 2025

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An amendment is a formal or official change made to a law, contract, constitution, or other legal document.
A change to the work, or change order, is an amendment that is permitted to occur through contract administration.
A fixed sum or lump sum change order is used when changes to the project scope can be accurately quantified, thereby resulting in an overall cost increase for the project. Time and materials (TM) change orders are generally needed when the full scope of the proposed changes are unknown.
Contractors can add a charge for change orders within the contract to help deter owners from making constant changes. Generally, a construction change order markup of 10% of the net direct cost is considered an acceptable and reasonable charge for change orders.
A change request is a proposal or request for a change order, either initiated by the owner or the contractor, or resulting from unforeseen conditions or errors. A change order is legally binding and requires approval from both parties, while a change request is not yet an agreement and may be rejected or negotiated.
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