Glossary
Change Order Glossary
Plain-language definitions of change order, contract, and construction cost terminology.
A
- AccelerationSchedule
- Direction by an owner to complete work faster than scheduled, often entitling a contractor to additional compensation. Read more →
C
- Change OrderCore Concepts
- A formal amendment to a construction contract authorizing a change in scope, cost, or schedule. Read more →
- ContingencyBudget
- A budget reserve held by the owner for unforeseen conditions and legitimate scope changes. Read more →
D
- Differing Site ConditionsEntitlement
- Physical conditions encountered at the site that differ materially from contract documents or reasonably expected conditions. Read more →
E
- EntitlementCore Concepts
- The legal basis for a contractor's right to additional compensation or time under the contract. Read more →
F
- Force MajeureContract
- Unforeseeable events beyond a party's control (e.g., natural disasters) that may excuse contract performance or entitle delays. Read more →
L
- Labor BurdenCosts
- The additional costs beyond base wages: payroll taxes, workers' compensation, benefits, and statutory contributions. Read more →
- Lump SumPricing Methods
- A fixed-price change order where the contractor agrees to perform the scope for a set amount. Read more →
M
- MarkupCosts
- A percentage applied to direct costs to recover overhead, profit, bond, and insurance on a change order. Read more →
N
- NoticeContract
- A formal written notification required by contract when a change event occurs. Failure to give timely notice can bar a claim. Read more →
O
- OverheadCosts
- Indirect costs not directly tied to field labor or materials — includes home office costs, project management, and administration. Read more →
T
- Time & Material (T&M)Pricing Methods
- A change order pricing method where costs are based on actual hours worked and materials used, plus markup. Read more →