Change Order (CHO)

A written order issued by the contracting officer that directs a change within the general scope of the contract. It is usually unilateral when issued and may later lead to a negotiated adjustment in price, schedule, or other terms.

What Is a Change Order?

In government contracting, a Change Order is a formal contract action used to direct certain in-scope changes under the contract's Changes clause. It allows the government to require a change before both parties sign a final negotiated agreement.

It is different from a bilateral modification. A bilateral modification is signed by both parties, while a Change Order is typically issued first by the government alone.

Key Characteristics

Issued in writing by the contracting officer

Used for changes within the general scope of the contract

Usually unilateral at the time of issuance

May affect work, specifications, method of performance, or delivery

Often followed by an equitable adjustment or supplemental agreement

How It Works in Government Contracting

A Change Order usually occurs during contract administration after award, when the government needs to revise part of the required work. It is part of the formal contract modification process.

The contracting officer issues the order, and the contractor is generally expected to proceed if the change is within scope and authorized by the contract. If the change affects cost or time, the parties later negotiate an equitable adjustment.

In practice, Change Orders are often used for changes to specifications, drawings, delivery requirements, or methods of performance.

Regulatory Framework

Change Orders are tied to the contract's Changes clause and the broader federal contract modification framework. They must stay within the general scope of the contract and be issued by an authorized contracting official.

If the government and contractor later agree on the impact of the change, that agreement is usually documented in a bilateral modification.

Why It Matters for Contractors

Change Orders matter because they can affect contract performance before price or schedule impacts are fully resolved. Contractors need to track changed work carefully and document any resulting cost or time effects.

They are also important strategically because poor documentation can make it harder to recover additional costs or schedule relief later.

Common Misconceptions About Change Orders

A Change Order is always signed by both parties.

It is usually unilateral when first issued.

Every contract change is a Change Order.

Some changes are handled through bilateral or administrative modifications instead.

A Change Order can go beyond the original contract scope.

It must remain within the general scope of the contract.

Frequently Asked Questions

Who issues a Change Order?

The contracting officer, or another authorized government official if delegated.

Does the contractor have to sign it first?

No. A Change Order is usually issued without the contractor's signature.

Can it affect price or schedule?

Yes. If it changes the work, the contractor may later seek an equitable adjustment.

What happens after it is issued?

The contractor performs the changed work, tracks the impact, and the parties may later negotiate the final adjustment.