Draft a Contract Change Order
Generate a formal contract change order or project manager's instruction with scope, cost, programme impact, and approvals.
Editor: Owen HaggerLast updated
Overview
This workflow enables Contracts Managers to produce a properly formatted contract change order or Project Manager's instruction that captures the scope of a variation, its cost and programme implications, and the required approval chain. The output is suitable for formal issue under NEC4 or JCT contract procedures and ensures all necessary information is documented for valuation and administration.
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Prompt
You are an experienced UK construction Contracts Manager. Draft a formal contract change order based on the following: Contract Form: [CONTRACT FORM, e.g., NEC4 ECC Option A / JCT SBC/Q 2016] Relevant Clause References: [CLAUSE REFS FROM YOUR CONTRACT FOR INSTRUCTION AND VALUATION, if known] Project: [PROJECT NAME] Change Order Number: [CO NUMBER, e.g., CO-027] Date of Issue: [DATE] Originated By: [NAME AND ROLE] Change Description: - Title: [BRIEF TITLE, e.g., Additional fire stopping to risers at Levels 2-5] - Detailed scope: [DESCRIBE THE CHANGE IN DETAIL, including affected areas, specifications, drawings] - Reason for change: [REASON, e.g., Design development / Employer requirement / Unforeseen condition / Statutory requirement] - Relevant drawings: [LIST DRAWING NUMBERS AND REVISIONS] - Relevant specifications: [SPEC REFERENCES] Cost Impact: - Contractor's quotation reference: [REF AND DATE] - Quoted amount: [VALUE] - Assessed fair value (if different): [VALUE] - Basis of valuation: [e.g., Measured rates from BoQ / Defined cost + fee / Daywork / Lump sum quotation] - Impact on provisional sums: [IF APPLICABLE] Programme Impact: - Affected activities: [LIST ACTIVITIES] - Estimated time impact: [DURATION, e.g., 5 working days] - Impact on completion date: [YES/NO AND EXPLANATION] Structure the change order as: 1. Header with project details, CO number, date, and distribution 2. Change order description and scope of works 3. Reason and justification 4. Drawings and specifications affected 5. Cost assessment with breakdown 6. Programme impact statement 7. Contractual basis (how the change is instructed and valued under the stated contract form; use only the clause references I have provided, otherwise leave [CLAUSE REF]) 8. Approval signatures block (Originated by / Checked by / Approved by) 9. Distribution list In UK contracts a change order is usually called a variation under JCT (a Change under JCT Design and Build) or a compensation event under NEC4: use the terms of the stated contract form throughout. Check your contract and take advice. Format as a professional document ready for printing and signature.
Typical result
~1hby hand~25mwith AI
A cautious typical estimate, including the time to gather the inputs and check the output. It varies with the job.
What it replaces: Drafting a change order or instruction from scratch.
What you still check
- The scope wording is exact and agreed
- Cost and time effects match the agreed assessment
- It goes through the contract's required route and authority
Use Case
Use when a variation has been agreed or instructed and you need to formally document it as a contract change order with full scope, cost, and programme details for the project record.
When not to use it
Don't use it to create a change that hasn't been properly instructed or agreed. A well-formatted document from someone without the authority to instruct doesn't make it a valid variation, and it can muddy your position later.
If the scope or value is still being argued about, you're not ready for a change order. Settle it through the contract's own process first. Check your contract and take advice. And if your contract runs instructions and compensation events through an online system, issue it there. A separate Word document can end up as a second, conflicting record.
Common mistakes
- Trusting the clause numbers the tool puts in the contractual basis section. It will often cite the wrong clause or the wrong edition. Check every reference against your actual contract and its amendments.
- Calling it a change order when your contract needs an instruction from a named person.
- Vague scope, like "additional works as discussed". Name the areas, drawings, revisions and specification references.
- Agreeing the cost and leaving time as "to be confirmed". Deal with time and money together.
- Forgetting to pass the change down to the subcontractors affected, on matching terms.
Frequently asked questions
- What is a change order in UK construction?
- It's the American term for what UK contracts usually call a variation. Under JCT it's an instruction from the architect, contract administrator or employer. Under NEC4 it's a Project Manager's instruction that becomes a compensation event. Use your contract's terms in the document.
- Who can sign a change order under JCT or NEC4?
- Only the person the contract gives that power to. That's usually the architect or contract administrator on JCT traditional forms, the employer or their agent on JCT design and build, and the Project Manager under NEC4. AI can't decide who has authority. Check your contract and take advice.
- What happens if a variation is only instructed verbally?
- Most contracts expect instructions in writing, and some set out a process for confirming oral ones. Confirm it in writing straight away, with the date, who gave it and exactly what was asked for. Check your contract and take advice, because the rules and time limits vary.
- Should a change order include the effect on time?
- Yes. Say which activities are affected and whether the completion date moves, even if the answer is no. Leaving time out can make it harder to recover later. Check your contract and take advice.
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