What is a change order?
A change order is a written agreement between the owner and the contractor that changes the contract: the scope of work, the price, the completion date, or all three. Once both sign it, it's part of the contract.
Changes come from the owner asking for something different, conditions nobody could see before (rot behind the drywall, rock in the footing), design changes or errors, and code or inspector requirements. A change can add money or take it away: a deductive change order is a credit.
When you need one
Any time the work, the price or the date moves away from the contract, and before the work starts whenever you can. Most contracts have a changes clause that says how changes must be made, often in writing and signed before the work. Some states' home improvement laws also require changes to be in writing. Read your clause: it decides whether you get paid for extra work.
How to fill in this change order form
Number it. Number change orders in order on each job, so nobody argues about which one is which.
Describe the change. What's added, removed or changed, where, with what materials, and what's not included. Specific enough that a stranger could price it.
Pick the reason. Owner request, hidden condition, design change, code requirement or allowance overage. It matters later when someone asks why the job grew.
Price it line by line. Labor, material, sub prices and equipment, each as quantity × unit cost. A lump sum line works too: leave the quantity blank.
Add overhead and profit and tax. Use the markup rate your contract allows for changes. Enter tax as a dollar amount if your state taxes it.
Show the contract sum. Original contract plus previously approved changes, then the new total with this one. The running total is what keeps the next change order honest.
State the time. Calendar days added (or 0) and the completion date before this change. The new date is worked out for you. Never leave time blank.
Sign before work starts. Download the PDF, both parties sign and date it, and each keeps a copy.
What a change order should include
- Change order number, date, project, owner and contractor.
- A clear description of the change and the reason for it.
- The price, broken down by line, with markup and tax shown.
- The contract sum before and after the change.
- The schedule impact in days and the new completion date.
- Terms, and signatures and dates from both parties.
Common change order mistakes
- Doing the work on a handshake and writing it up later. That's how extras go unpaid.
- Leaving the time impact blank. If the change adds days, say so now; if it doesn't, write 0.
- A single lump sum when the contract asks for a breakdown.
- Forgetting the sub. If a sub does the extra work, issue them a matching change to their subcontract or PO.
- Losing the running total. The next change order's "previously approved" figure should match the last one's new total.
- Bundling unrelated changes. One change per change order is easier to approve and easier to track.
Change order example
Change order #4 on a new home: the owners asked for a frost-free hose bib on the garage's north wall.
| Description | Qty | Unit | Unit cost | Amount |
|---|---|---|---|---|
| Plumber: run line, install frost-free hose bib and shutoff | 1 | ls | $485.00 | $485.00 |
| Materials: 12 ft PEX, fittings, hose bib | 1 | ls | $96.50 | $96.50 |
| Drywall patch, tape and paint | 3 | hr | $65.00 | $195.00 |
| Subtotal | $776.50 | |||
| Overhead and profit (15%) | $116.48 | |||
| Total of this change order | $892.98 |
With a $486,000.00 original contract and $12,450.00 of earlier changes, the new contract sum is $499,342.98. One calendar day moves completion from 03/19/2027 to 03/20/2027.
Change order vs. purchase order vs. change directive
A purchase order buys material or work from a supplier or sub; a change order changes your contract with the owner. A construction change directive (CCD) is a written order from the owner to go ahead with a change before the price or time is agreed. It keeps work moving, and a change order settles the numbers later.
Common questions
What is a change order form?
The document that records a change to a construction contract: what's changing, why, the price, the time impact and the new contract sum, signed by the owner and the contractor.
How do you write a change order?
Number it, describe the change and the reason, price it line by line, add overhead, profit and any tax, show the contract sum before and after, state the days added and the new completion date, and get both signatures before the work starts.
Who signs a change order?
The owner (or someone the contract authorizes to act for them) and the contractor. On jobs with an architect, the architect often signs too. Check who your contract says can approve changes; a superintendent's verbal OK usually isn't enough.
What is the difference between a PO and a change order?
A purchase order is how you buy material or work from a supplier or sub. A change order changes the contract between the owner and the contractor. An owner change often leads to a PO or a subcontract change further down.
What is the difference between a change order and a CCD?
A change order is agreed and signed by both sides, with price and time settled. A construction change directive is the owner telling you to proceed before price or time is agreed; it's usually turned into a change order once the numbers are settled.
What is another name for a change order?
You'll hear change order request (the contractor's proposal before it's approved), extra or extra work order, contract modification, and, outside the US, variation.
How much markup can I put on a change order?
Whatever your contract allows. Many contracts set the overhead and profit rate for changes, sometimes different rates for your own work and for sub work. There's no single standard number, so check your contract before you price.
Is anything I type uploaded?
No. The form runs in your browser and saves only in this browser on this device. Nothing you type is sent to us, and you don't need an account or an email address to download.