ABSTRACT
As change orders occur on most construction contracts, managing them is an important project management function. This chapter provides an overview of different types of changes, functional and legal. It describes change order management and pricing and the roles of experienced project engineers in the change order process. The project changes will be discussed from two perspectives: functional changes and legal changes. Change orders and change directives are two separate instruments to implement contractual changes on a project. A change order is a formal contract-revising vehicle that is utilized to modify a contract after construction has commenced. In order for the general contractor and their subcontractors to be paid for extra work performed, they must have their change order proposals approved. The easiest way to achieve this goal is to be realistic with respect to pricing on direct and subcontract cost estimates.
