A change order is a signed agreement to change the work after the original contract. It's how extra work becomes paid work instead of a favor you didn't plan on.
The short version. Write it down, price it, and get it signed before you do the extra work. A verbal "go ahead" is easy to forget when the final bill arrives.
When you need one
- The customer asks for more, like an extra outlet, a bigger shower or a different tile.
- You find hidden conditions, like rotten subfloor, old wiring or water damage behind a wall.
- Something is removed from the scope, which lowers the price.
- Materials change, like a discontinued product or an upgrade the customer picks.
What to put in a change order
- Change order number and date
- Customer name and job address
- Reference to the original contract or proposal
- What's changing: a clear description of the added, removed or changed work
- Why: customer request, hidden condition, or material change
- Price change: the amount added or deducted
- Time change: extra days, if any
- New contract total: original price plus all approved changes
- Signatures and dates from you and the customer
Example (illustrative):
| Line | Amount |
|---|---|
| Original contract | $12,000 |
| Change order 1: replace rotten subfloor, 40 sq ft | + $860 |
| Change order 2: remove baseboard painting from scope | − $240 |
| New contract total | $12,620 |
Get it signed before the work
Stop, explain the change, give the price, and get a signature before you start the extra work. If it's urgent, like a leak, get written approval by text or email at minimum and follow up with a full change order.
Price change orders properly
Extra work often costs more per hour than the original job: you stop, re-plan, make another supply run and fit it around the schedule. Price the extra time, materials, overhead and profit, the same way you priced the original job.
For unknowns, you can agree to time and materials with a not-to-exceed amount, so the customer knows the most it can cost.
Keep a log
Number every change order and keep a running total. When you send the final invoice, the customer can see the original price plus each approved change, with no surprises.
Tip: Put a "hidden conditions" clause in your proposal, so the customer already knows how surprises will be handled before you find one.
See also: What to Put in a Contractor Proposal and Getting Paid & Collections.