Change Order Template

1. Fill in the change order and client info. Start with the change order number, date, and original contract reference. Add the client's name, project address, and contact details. The original contract reference ties this change back to the base scope.

2. Describe the change. Select the reason for the change and write a detailed description of what is being added, removed, or modified. Be specific — vague change orders lead to disputes when the client's memory of the conversation differs from yours.

3. Break down the costs. Add line items for every material, labor hour, subcontractor charge, and equipment rental. Set your markup percentage. Transparent, itemized pricing prevents arguments about what the client is paying for.

4. Document the schedule impact. State how many working days this change adds and which milestones are affected. If materials have lead times, note them here. Schedule documentation prevents disputes about completion dates.

5. Get signatures before starting work. Both contractor and client must sign before any change order work begins. This single practice prevents more disputes than any other documentation habit in construction.

A change order is the document that authorizes modifications to the original project scope. Every section exists for a reason.

Original scope reference ties the change back to the original contract. Include the contract number, original scope item being modified, and the reason for the change. Without this context, disputes become impossible to resolve.

Cost breakdown documents the financial impact of the change. Itemize materials, labor hours, subcontractor costs, and any schedule adjustments. Detailed breakdowns prevent disputes and help with accurate job costing.

Material tracking protects both contractor and client. Document every material added, quantities used, and unit costs. Keep receipts and delivery tickets for verification and audit trails.

Schedule impact must be clearly stated. How many days does this add to the timeline? What milestones are affected? Documenting schedule impact upfront prevents arguments about completion dates.

Dual signatures from both contractor and client with dates create binding authorization. No work should begin on a change until both parties sign. This single step prevents more disputes than any other documentation practice.

Scope additions. When a client wants to add rooms, upgrade finishes, or include work not in the original contract, a change order documents exactly what is being added, the cost, and the timeline impact before work begins.

Unforeseen conditions. Hidden damage, soil issues, structural problems, or code requirements discovered during construction often require scope changes. A change order documents the discovery, the required fix, and the cost so the client understands why the project budget is changing.

Material substitutions. When specified materials are unavailable or a client wants to upgrade or downgrade selections, a change order records the substitution, any cost difference, and whether it affects the schedule or warranty coverage.