The one rule
Get it signed before the extra work starts. Not after the wall is open, not at the end of the job. Once the work is done, the client is deciding whether to pay for something they already have. Before, they're deciding whether to buy it.
What to put on every change order
- Change order number and date, so you can refer back to it.
- Project and client, matching your contract.
- Description of the change, specific enough that a stranger could build it. Reference plans, selections or photos.
- Reason: client request, design change, hidden condition, code or inspection, allowance overage. It keeps the conversation factual.
- Itemized cost: labor, material, subs, then your overhead and profit, permits and fees.
- Revised contract sum: original contract, plus prior approved changes, plus this one. Show the new total.
- Schedule impact: no change, or how many days it adds.
- Payment terms: due on signing, added to the next draw, or another arrangement.
- Signatures from you and the client, with dates.
A fillable change order and a draw schedule in Excel, each with a filled-in sample. No cost.
Show the new total
The line that heads off the most arguments is the revised contract sum. Clients rarely object to one change; they get surprised by the pile. When every change order shows the running total, nobody gets to the end of the job confused about the number.
Pricing a change
- Price the work like you would in an estimate: labor, material and sub costs.
- Add your overhead and profit. Change orders interrupt the job and take time to manage; price that in.
- Add permit, fee and tax lines if they apply.
- Credits for removed work go in as negative lines, so the math stays honest both ways.
Make it easy to do on site
The best change order process is one you'll actually use while standing in the driveway. A fillable PDF on your phone that totals as you type, or a printed pad in the truck, beats a perfect form back at the office. If it takes ten minutes, it gets skipped.
Keep a log
Every signed change order should land in one log with its amount and status, and that log should feed your draws or invoices. That's how approved changes actually get paid.
Seven templates for small builders: estimate, job cost, draws, selections, schedule, change order and sub packet. $97, instant download.
This is general information, not legal advice. Have your contract documents reviewed by a local attorney.