When do certain rules must be followed regarding change orders?

The requirement for following specific rules regarding change orders is set based on their impact on the original contract value. Change orders typically become a significant concern when they exceed 20% of the original contract amount. This threshold is crucial because changes of this magnitude can substantially alter the scope of work, budget, and timelines, necessitating additional oversight and a formal process to ensure compliance with legal and contractual obligations.

When change orders exceed this threshold, they often require more rigorous documentation, justification, and possibly the approval of governing bodies or departments. This is to protect all parties involved and to maintain transparency and accountability in public works projects. Adhering to these established rules when change orders exceed 20% helps ensure that projects remain within budget and that any necessary modifications are handled appropriately to avoid disputes later on.