Are Change Orders typically paid out at the time of Application of Payment or are they paid when ever the Chang order is issued?
On projects using American Institute of Architects (AIA) documents (or documents based on those documents), a change order will be initiated by the AIA G701 change order form. Once they’ve been approved, they will need to be accounted for in the G702 pay application. Line 2 of the G702 form is where the “net change by change orders” should be added. This form provides a table to summarize and calculate change orders right on the pay app itself. The table separates change orders into two columns; one for any changes that add to the contract, and the other for those that deduct from the contract price.
However, just because standard pay app forms include change order amounts, that doesn't mean it's the only way to go about it. Some parties bill change orders differently (especially parties contracting directly with the owner) and look to get paid for all or a portion of the change order immediately.
It is likely that change orders are contemplated by the contract for the work, and the process for executing the change order and billing for that work is set forth in that document.