Customer requests
Anything added, moved, upgraded or swapped after the contract was signed, from a bigger patio to a different faucet.
Managing Change Orders Correctly
Most change-order trouble starts with a friendly "while you're here" and ends with an invoice the customer did not expect. A simple written process protects both your margin and the relationship.
By Jonathan Champion, founder of ChampEntra ยท Updated October 12, 2026
Why it matters
Small changes add up when nobody writes them down
A change order is a written agreement to change the scope, price or schedule of a job you already agreed to. It sounds like paperwork. In practice, it is how you get paid for extra work without souring the customer.
Here is how it usually goes wrong. The homeowner asks the crew to move an outlet or add a gate. The crew wants to be helpful, so they just do it, and the office never hears about it. Either the company eats the cost, or the extra shows up on the final bill and the customer feels ambushed.
Nobody in that story was dishonest; a process was missing. The fix is a habit everyone understands: changes get written, priced and approved before the work happens. Put it in your contract and explain it at the start of the job, and it rarely feels like a surprise later.
What counts as a change
Hidden conditions
Rot behind the siding, rock in the trench, an unmarked line or existing wiring that will not pass inspection. Photograph it before anything else happens.
Plan and design revisions
New drawings from an architect or engineer, or a selection that changed after you priced the job.
Inspector requirements
Work an inspector requires that was not in your scope. Whether it counts as a change depends on what your contract says about code compliance.
Delays you did not cause
Late customer-supplied materials, a site that is not ready or another trade that has not finished. These can change your costs and your schedule.
Deleted work
When the customer drops part of the job, write it up as a credit. A clean record runs in both directions.
Process
A change-order process that works from the field
The steps are simple. The discipline is following them every time, including on small changes.
- Stop and flag it. The crew does not start extra work without approval. Give them a simple line to use: "Good idea. Let me have the office price that for you so you can decide."
- Document it. What was asked or found, by whom and when, with photos and measurements.
- Price it. Labor, materials, equipment, subcontractors, overhead and markup, using the same method as the original bid. Small changes often cost more than they look because they interrupt the planned sequence of work.
- Write it up. A clear description, the price or pricing method, the schedule impact and the new contract total.
- Get it signed before the work. Written, dated approval from someone with authority to approve it. On commercial jobs, that may not be the person standing on site.
- Update the job. Schedule, material orders, crew instructions and the project budget.
- Bill it as agreed. Show it as its own line on the invoice, with the change order number.
Steps one and two are where the field crew protects the company. Our guides to field photos that protect your business and how foremen should document daily work cover what to capture.
When the work cannot wait
Some situations will not wait for paperwork: a burst pipe, an unsafe wall, an open trench with rain coming. Make the site safe, document everything and get written approval as soon as you can, even if it only sets a time-and-materials basis or a not-to-exceed amount. Follow your contract's terms for emergency work.
Checklist
What every change order should include
Use the same one-page format every time. Customers get used to it, and nobody has to guess what was agreed.
Number and dateA running number for the job, such as Change Order 3, the date written and the contract it changes.
What is changingSpecific scope: location, quantities, materials and finish. "Add 40 feet of fence on the north line" beats "extra fence."
WhyCustomer request, hidden condition or design change, with photos attached when there is something to see.
Price or pricing methodA fixed amount, or time and materials with the rates written in. Show credits for deleted work.
Schedule impactDays added, or "no change." Without it, you may be blamed later for a delay the customer asked for.
New contract totalThe original amount plus every approved change so far, so the customer always knows where things stand.
Payment termsWhen the change is due and whether a deposit is needed first.
SignaturesThe customer's and yours, each with a date.
Common mistakes
Where change orders usually go wrong
Most of these come from good intentions: wanting to keep the job moving and the customer happy.
Taking a verbal yes
Two people can leave the same conversation with different ideas about the price. Get a signature on a document that names the work and the price.
Giving work away without saying so
It is fine to do a small extra at no charge. Write it up as a no-charge change anyway, so the customer sees it was extra and your records show what was really built.
Saving every change for the final bill
A stack of surprises at the end of a job is a reliable way to start a payment dispute. Bill approved changes as you go, the way each change order says.
Not closing the loop
The office approves a change, but the crew never hears about it. Or the crew does the work, and the office never bills it. Someone has to confirm both sides every time.
Tracking
Keep every change connected to the job
A change order that lives in someone's inbox is hard to find when it is time to bill. Keep a simple log for each job.
- Number, date and a short description
- Amount, or credit
- Status: pending, approved, declined or billed
- Where the signed copy and photos are saved
Review it before every invoice. Over time, it also shows which kinds of jobs tend to change, so you can tighten scope language on future bids.
If you use ChampEntra, a change can be written up as its own proposal with line items and terms, then sent through a secure signing link with status tracking, so the office can see whether the customer has signed. Field photos and notes stay in the daily job report, budgets and costs are tracked in projects and job costing, and customers can review proposals and invoices in their portal.
Questions
Common questions
Do small changes really need a written change order?
It is the safest habit, and small changes are where money quietly slips away. Requirements vary by state and type of work, so ask your attorney to review the change clause in your contract.
Can a customer approve a change by text or email?
Many contractors accept written approval by email or electronic signature. Whether that is enough depends on your contract and your state's rules. At a minimum, the approval should name the specific change and the price.
What if the customer wants the work but will not sign?
Hold off on the extra work until it is settled, and explain the price and options in plain terms. If a hidden condition is blocking progress, document it, follow your contract's process and talk with your attorney if it stalls.
When should a change order be billed?
When the change order says it will be, often with the next progress invoice or as a deposit before special-order material is bought. Show it as its own line with the change order number so the customer can match it.
Next step
Start a ProjectWant proposals, signatures and job records in one system?
ChampEntra builds contractor software around how your jobs actually run, from the first bid through signed changes, daily reports and the final invoice. Tell us how changes are handled on your jobs today, and we will build the workflow around it.