Change Orders in a PS Project

Overview of a Formal Change Order Process

A formal change order process is a structured approach to managing changes to the scope, timeline, cost, or deliverables of a project. It ensures changes are evaluated, documented, approved, and communicated effectively. This process is critical in professional services projects to maintain control over project parameters while adapting to customer needs.

Key Strategies for Managing Change in a Project

1. Set Expectations Early

• Establish a clear change management process during project kickoff.

• Ensure the customer understands that changes may affect scope, cost, or timeline.

2. Define and Communicate a Scope Baseline

• Use a well-documented Statement of Work (SOW) to define the original project scope.

• Use the baseline to evaluate and justify changes.

3. Implement Strong Governance

• Assign responsibility for approving changes to a designated project sponsor or governance board.

• Ensure all changes are formally documented and approved before implementation.

4. Leverage Collaboration Tools

• Use project management tools (e.g., Jira, Monday.com, Wrike) to track change requests and related documentation.

• Provide visibility to all stakeholders to avoid miscommunication.

5. Prioritize Changes

• Not all changes are equally critical; prioritize changes based on their value, urgency, and alignment with project objectives.

• Group non-urgent changes into batches to minimize disruptions.

Steps in a Formal Change Order Process

1. Identify the Need for Change

• Changes may arise from new customer requirements, unforeseen circumstances, or technical constraints.

• Clearly define the nature of the change (scope, schedule, cost, or deliverables).

2. Initiate a Change Request

• The party requesting the change (customer or internal team) submits a formal change request.

• The request should include:

• A description of the change.

• Reasons for the change.

• Potential impacts (cost, timeline, resources).

3. Evaluate the Change Request

• The project team assesses the feasibility and implications of the change, considering:

• Impact on the project scope, budget, and timeline.

• Risks introduced by the change.

• Alignment with project goals and customer priorities

4. Develop a Change Order Document

1. Document the proposed change, including:

1. Detailed description of the change.

2. Updated project scope, timeline, and budget.

3. Resource requirements and risks.

4. Stakeholder responsibilities.

• Seek Approvals

1. Present the change order to the customer and internal stakeholders for review.

2. Obtain written approval from all relevant parties to proceed with the change.

• Implement the Change

1. Update project plans, schedules, budgets, and resource allocations as needed.

2. Communicate the approved change and implementation plan to the project team and stakeholders.

• Monitor and Report

1. Track the progress and impact of the change on the project.

2. Include updates in regular project status reports.