What is a Change Order? Definition & Guide Explained

What is a Change Order?

A change order is an official document used in contracts to modify the original agreement between the parties involved. It is a formal way to document changes in project scope, deliverables, or timelines. Change orders are important because they help ensure that everyone is aware of the adjustments being made and agree on how these changes will impact the project.

Why Are Change Orders Necessary?

Change orders are necessary for several reasons:

Scope Changes: Sometimes, clients may want to add or change specific features during a project. For example, a photographer may be asked to include additional editing for new images after the original agreement.
Budget Adjustments: A change order can address changes in the budget, whether it requires additional costs or adjustments. For instance, if a videographer decides to upgrade their equipment, a change order would formalize the extra costs involved.
Time Extensions: Sometimes, projects encounter delays. A change order can officially extend the deadline and clarify the new timeline. For example, a designer might need more time to complete a project due to unexpected client feedback.

How Do I Create a Change Order?

Creating a change order involves a few key steps:

Identify the Change: Clearly define what changes are being requested, whether they involve scope, costs, or timelines.
Document the Details: Include specifics about the new requirements, costs, and how these changes will affect the overall project. For example: "The client requests an additional three hours of editing, resulting in an increased fee of $150."
Get Approval: Both parties should review and agree to the change order. This may involve signing the document to ensure mutual understanding and consent.

When Should I Use a Change Order?

A change order should be used whenever there are significant changes to the original contract. Here are some scenarios:

Client Requests: If a client, such as a coach or influencer, asks for additional services not included in the original agreement, a change order is necessary.
Internal Adjustments: If you, as a creative entrepreneur, decide to change the scope of your work for any reason, it’s a good practice to document this with a change order.
Unexpected Circumstances: If unforeseen events affect the timeline or output, such as equipment failure for a filmmaker, a change order can help adjust expectations and responsibilities.

In summary, understanding change orders is essential for anyone working in a creative field. They help keep projects on track and ensure that everyone involved is aware of any modifications to the original agreement. Whether you are a photographer, designer, or any creative professional, mastering the use of change orders can lead to clearer communication and better project outcomes.

FAQs

When should I use a change order?

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You should use a change order when a client requests a change that affects the project's scope, pricing, or deadlines. This ensures clarity and agreement for both parties, especially for photographers or animators.

How does a change order impact my payment?

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A change order may result in additional charges for extra work or services beyond the initial agreement. It ensures that creators like podcasters or musicians are compensated fairly for added tasks, especially when time or effort increases.

Can a change order be refused?

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Yes, a change order can be refused if it significantly alters the original agreement or if both parties cannot reach a fair agreement. However, this is typically negotiated between the creator and client, ensuring a balanced outcome.

Are change orders common for designers and videographers?

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Yes, change orders are common in creative fields like design and videography, where clients often request adjustments to the scope, style, or deadlines. It's essential for both parties to have a clear understanding and formalize these changes.

How do I document a change order properly?

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To document a change order, outline the changes in writing, including new timelines, costs, and project specifications. Ensure that both you and the client sign the document, ensuring mutual understanding and preventing misunderstandings.

Change Orders