What should contractors do if they encounter a change order on a project?

When contractors encounter a change order on a project, obtaining written approval from the client is essential. A change order represents a formal modification to the original contract, which may involve adjustments in scope, time, or cost. Securing written approval protects both parties and provides a clear record of the agreed-upon changes. This documentation can prevent misunderstandings and disputes later, and ensures that all adjustments are formally integrated into the project management process.

Verbal approvals, while sometimes permissible in informal situations, are not advisable for significant changes as they lack verifiability and can lead to conflicts regarding what was actually agreed upon. Additionally, acting on a change order without any form of approval, either verbal or written, can place the contractor at risk for non-compliance with the contractual terms and can lead to potential financial losses or legal complications. Ignoring a change order would not be appropriate, as this could lead to further issues with project execution and client satisfaction.