What it means
Projects rarely go exactly as drawn. The owner adds equipment, the design changes, or conditions on site turn out to be different from what was expected. A change order records what’s changing, how it affects the price and the schedule, and that the parties have agreed to it.
On most commercial projects, an electrical subcontractor’s change orders go through the general contractor. They may be priced as a fixed amount or on a time-and-materials basis, as the contract allows.
An example: partway through a project, the owner decides to add EV chargers in the parking garage. The electrical contractor prices the extra conduit, wire, panel capacity and labor, notes the effect on the schedule, and submits a change order request. Work on the chargers starts once the change order is approved.
Why it matters
- Getting paid. Extra work done without an approved change order can be hard to recover.
- Accurate job costs. Change orders need to be tracked separately so each job’s true cost and profit are clear.
- Material planning. New scope can mean new quotes, submittals and lead times.