A customer asks for "one more thing." It seems small, so you agree on the phone and get it done. Then another. By the end, you've done far more work than you quoted and you have nothing in writing to invoice from. A change order prevents exactly that.
What is a change order?
A change order is a short document that records a change to an agreed job, covering what's added, removed or modified, and its effect on price and schedule. Both sides approve it before the changed work begins. It amends the original quote or scope of work without rewriting them.
When to use a change order
- The customer asks for work that isn't in the scope of work.
- Deliverables change in quantity, format or specification.
- Site conditions or customer-supplied information turn out different from your stated assumptions.
- The schedule moves in a way that affects your cost.
- Work is removed and the price should come down.
What to include in a change order
| Field | Purpose |
|---|---|
| Change order number and date | Track multiple changes on one job. |
| Original quote / SOW number | Ties the change to the approved work. |
| Customer | Who's approving. |
| What's changing | What was scoped originally, and what's added, removed or modified. |
| Why | One line: customer request, site condition, design change, and so on. |
| Price impact | Original price, change amount, new total. |
| Timeline impact | Original date, days added or removed, new date. |
| Approval | Names, signatures and dates. Work on the change doesn't start until both sign. |
How to price a change
Price changes the same way you priced the original job: labor, materials, subcontractors and other costs, plus your margin. Account for the disruption too. Remobilizing, re-ordering, or reworking finished items often costs more than the change looks like on paper. If the change pushes the schedule, say so; time has a cost even when the price doesn't move.
How to bring it up without friction
Most customers don't object to paying for extra work. They object to surprises. Frame the change order as a service: "Happy to add that. Here's what it changes in price and timing so you can approve it before I start." Raising it at the moment of the request is far easier than explaining an unexpected line on the final invoice.
Keep a log of small requests
Not every request deserves its own form, but every request deserves a line in a log: date, who asked, what they asked for, and the estimated effect. When small items add up to real time or cost, bundle them into a change order. A log also shows the customer, calmly and factually, how much the job has grown.
Write the change process into the original paperwork
Change orders work best when the customer agreed to them at the start. Add one line to your scope of work: "Any change to scope, deliverables or timeline requires a signed change order before work on the change begins." Then, when a change comes up, you're following the agreed process, not inventing one mid-job.
Frequently asked questions
Do I need a change order for small changes?
If the change affects price, time, or what you deliver, write it down. For truly minor items, you can log them and bundle several into one change order, but get approval before the work if it costs you anything.
Can a change order reduce the price?
Yes. A change order records any change, including removing work. Show the original price, the change, and the new total.
Is an email approval enough?
That depends on your agreement with the customer and your jurisdiction. Many businesses accept a signed form or an electronic signature. The key is a clear written record that the customer approved the specific change and its cost before work started.
What if the customer won't approve the change order?
Don't start the changed work. Continue with the original scope, or discuss options like phasing the work, adjusting the scope, or pricing alternatives.
This guide is general business information, not legal, tax or financial advice. Have a qualified professional review contract terms for your business and location.