Understanding Change Orders

In the world of freelancing, clarity and communication are key, especially when it comes to contracts. A change order template is a crucial document that helps you modify existing contracts, ensuring both parties are on the same page. This can involve changes in scope, costs, or timelines. Below, we’ll explore three practical examples of how to modify a contract using a change order template.

Example 1: Adjusting the Project Scope

Changing the project scope can be a common occurrence, especially if a client decides they want additional features. Let’s say you’re a graphic designer initially contracted to create a logo but the client now wants a full branding package, including business cards and social media graphics.

To modify the contract, you’d use a change order template that outlines the new scope of work:

Change Order Template

• Date: [Insert Date]
• Client Name: [Client’s Name]
• Project Title: Logo Design

Current Scope:

• Create a logo for [Client’s Name].

New Scope (Change Order):

• Create a logo for [Client’s Name].
• Design business cards.
• Create social media graphics for [Client’s Name].

Reason for Change: Client requested a full branding package.

Additional Costs:

• Total cost for additional services: $500

Revised Total:

• Original Contract Amount: $300
• New Contract Amount: $800

Signatures:

• [Your Name]
• [Client’s Name]

This change order clearly outlines the new scope and additional costs, ensuring both parties agree to the changes.

Notes

• Always make sure to have both parties sign the change order to avoid any misunderstandings later.
• Keep a copy of the signed change order with the original contract.

Example 2: Extending the Project Timeline

Sometimes projects take longer than anticipated. Let’s say you’re a web developer working on a client’s website and need more time to implement changes based on client feedback.

You can use a change order template to formally request an extension:

Change Order Template

• Date: [Insert Date]
• Client Name: [Client’s Name]
• Project Title: Website Development

Original Timeline:

• Completion Date: [Original Completion Date]

New Timeline (Change Order):

• Completion Date: [New Completion Date]

Reason for Change: Additional feedback required more time for implementation.

Impact on Costs:

• No additional costs; however, if the timeline impacts any deliverables, please discuss.

Signatures:

• [Your Name]
• [Client’s Name]

This template allows you to adjust the timeline while keeping the client informed.

Notes

• Clearly state the reasons for the timeline change to justify the request.
• If there are any additional costs associated with the extended timeline, be sure to mention them.

Example 3: Changing Payment Terms

Let’s say you’re a freelance writer and your client wishes to change the payment terms from a lump sum to a milestone-based payment structure. You’ll need to modify the contract using a change order template:

Change Order Template

• Date: [Insert Date]
• Client Name: [Client’s Name]
• Project Title: Content Creation

Original Payment Terms:

• Lump sum payment of $1,200 upon project completion.

New Payment Terms (Change Order):

• Payment of $400 upon completion of each of the first three articles.
• Final payment of $600 upon project completion.

Reason for Change: Client prefers a milestone payment structure due to budget constraints.

Signatures:

• [Your Name]
• [Client’s Name]

This change order effectively communicates the new payment structure, ensuring transparency in financial matters.

Notes

• Be sure to document any discussions leading to this change to avoid disputes later.
• If applicable, outline any specific dates for when each milestone payment is due.

By using these examples of how to modify a contract with a change order template, you can maintain clear communication and professionalism in your freelance projects. Remember, the key to a successful freelance career is ensuring both you and your clients have a mutual understanding of the project’s scope and terms!