Contractor guide
Change Orders Guide
How to handle changes without losing money or creating disputes.
What Is a Change Order?
- Any change to the original scope of work.
- It can include added work, removed work, or modified work.
Why Change Orders Go Wrong
- Work starts before approval.
- Pricing is rushed or guessed.
- There is no written record.
- Miscommunication with the client creates different expectations.
What a Proper Change Order Includes
- Description of the change.
- Cost breakdown for labor, materials, and other costs.
- Updated price.
- Timeline impact, if the change affects the schedule.
- Client approval.
The Right Process
- 1. Identify the change.
- 2. Price it correctly.
- 3. Document it clearly.
- 4. Get approval.
- 5. Then perform the work.
Real-World Consequences
- Disputes: when the scope changes but nothing was clearly approved, both sides remember the job differently.
- Lost profit: rushed pricing and undocumented extras quietly eat away at the job's margin.
- Delayed payments: clients are more likely to hold payment when change work is unclear or unsupported.
What to Do Instead
- Always document changes.
- Price using margin, not guesswork.
- Get approval before starting.
Related links
How to handle changes without losing money or creating disputes.