Change orders are the #1 source of disputes in construction projects. The homeowner says "while you're at it, can you also..." and suddenly your carefully budgeted project spirals out of scope. If you don't formalize these changes in writing, you'll eat the extra costs—or worse, end up in court.
What is a Change Order?
A change order is a formal, written amendment to the original contract. It documents any changes to the project scope, timeline, or cost after the original agreement was signed.
Without a change order: "But I thought the upgrade was included!" — You lose money or a client.
With a change order: "Here's the signed document showing the granite upgrade costs $2,500 extra." — You're protected.
When to Issue a Change Order
- The client requests additional work not in the original scope
- The client wants to upgrade materials or finishes
- Unforeseen conditions are discovered (hidden water damage, code violations)
- The client wants to remove or downgrade items (this reduces the price)
- External factors change the timeline or cost (material price spikes, permit delays)
Change Order Template Structure
Use our Quotation Generator to create a professional change order document with these sections:
- Change Order Number: CO-001, CO-002 (sequential)
- Reference: Original contract/estimate number
- Description of Change: Detailed description of what's changing
- Cost Impact: Additional cost (or credit) with line-item breakdown
- Timeline Impact: How many additional days the change adds
- Signature Lines: Both parties must sign before work proceeds
The Golden Rule
Never start additional work before the change order is signed. Verbal agreements are not enforceable. If the client says "just go ahead, we'll sort out the paperwork later," politely insist: "I'd love to get started! As soon as I have the signed change order, my crew can begin the upgrade first thing tomorrow."