# Change orders (variations)

Source: https://contracko.com/glossary/change-orders

# Change orders (variations)

Agreed additions to or reductions of contracted work, with corresponding price and time adjustments.

## Definition

Change orders (variations) formalise additions to or deductions from the originally agreed scope of work, with corresponding adjustments to price and schedule. In Dutch construction practice this is "meer- en minderwerk", governed largely by contract and standard conditions such as the UAV 2012 rather than a single statute. Clear procedures for authorising, pricing and approving changes prevent disputes over unauthorised extra work.

## Example

> When the client asks for an extra floor, the parties issue a change order setting the additional price and a revised completion date.

## Why this is a business risk

Unauthorised or undocumented change orders are a leading source of construction and IT project disputes. Contractors who perform extra work without a signed change order often cannot recover the additional costs. Clients who give verbal instructions then dispute the scope face inflated claims they cannot disprove because there is no written record.

## How to manage it

- Require all scope changes to be agreed in writing before work starts -- a signed change order that specifies scope, price and revised timeline.
- Define in the contract who has authority to issue and approve change orders; a project manager's verbal instruction should not bind the client unless the contract says so.
- Track the cumulative cost and schedule impact of change orders throughout the project so the overall contract value and completion date remain transparent.
- Store each signed change order alongside the main contract so the complete scope history is traceable in one place.
- Set a milestone for any revised completion date created by a change order and update it in your contract tracking system immediately.

### How Contracko helps

Contracko stores change orders alongside the main contract so the full scope history is searchable in one repository. Each amended completion date and revised contract value can be tracked as a milestone, and reminders ensure revised deadlines do not slip by unnoticed.

## Relevant for

[Construction](https://contracko.com/industries/construction-industry)[Engineering & Architecture](https://contracko.com/industries/engineering)[IT Services](https://contracko.com/industries/it-services)

## Related clauses

- [Change Order (Variations) Clause](https://contracko.com/clause-library/change-order)
- [Payment Terms Clause](https://contracko.com/clause-library/payment-terms)

## Related terms

- [Acceptance protocol](https://contracko.com/glossary/acceptance-protocol)
- [Price revision](https://contracko.com/glossary/price-revision)
- [Contract value](https://contracko.com/glossary/contract-value)
- [Obligation of result](https://contracko.com/glossary/obligation-of-result)

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## Frequently asked questions

Common questions about this term.

- **Q:** Is a contractor entitled to payment for work done without a signed change order?
  **A:** In principle no, unless the client can be shown to have instructed or approved the work. Dutch courts look at whether the client's conduct created a reasonable expectation of payment. To be safe, always obtain written approval before starting extra work.

- **Q:** Does a change order automatically extend the completion date?
  **A:** Only if the change order or the contract says so. Extra work does not automatically grant extra time; the contractor must raise a time-extension claim promptly and the parties must agree on the extension. Unresolved claims tend to accumulate into larger disputes at project end.

- **Q:** What is the difference between a variation and a contract amendment?
  **A:** A change order (variation) modifies the scope, price or schedule of the current contract without replacing it. A contract amendment is a formal revision to the contract terms themselves, such as changing the liability cap or payment terms. Both require agreement of both parties.

- **Q:** Can a client require the contractor to start extra work before the change order is signed?
  **A:** Some contracts allow the client to issue a provisional instruction to start work while pricing is agreed. The contractor should confirm the instruction in writing and note that a formal change order is to follow, creating a paper trail even before final approval.

- **Q:** How should disputes about change-order pricing be resolved?
  **A:** Most contracts specify that extra work is priced at agreed unit rates, market rates or cost-plus. If no rate is agreed, courts look at the reasonable value of the work. Including a binding expert determination or fast-track arbitration clause for pricing disputes avoids full litigation.

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