A change order documents approved work that changes the original scope, price, or schedule. It protects the contractor from unpaid extra work and protects the customer from surprise charges. The best change orders are clear, specific, and approved before the additional work begins.
Use the outline below as a practical template. Adapt it to your contract, trade, state rules, and legal requirements.
Change order header
Start with the identifying information.
Project name:
Project address:
Customer or owner:
Contractor:
Change order number:
Original contract or bid number:
Date issued:
Requested by:
Prepared by:
Numbering matters. A simple sequence such as CO-001, CO-002, and CO-003 makes it easier to track approvals and reconcile totals later.
Description of the change
Describe what is changing in plain language. A useful description explains the added, removed, or revised work.
This change order covers [added/revised/removed work] in [area of project]. Work includes [task 1], [task 2], and [task 3].
Avoid vague descriptions like “extra work” or “customer changes.” If the customer asks for four additional recessed lights, say that. If the plan revision moves a wall and requires rerouting, say that.
Reason for the change
The reason creates context. It can also help separate customer-requested upgrades from hidden conditions, design revisions, code requirements, or coordination issues.
Common reasons include:
- Customer added scope.
- Hidden condition discovered after demolition.
- Plan revision or design change.
- Material substitution.
- Code or inspection requirement.
- Owner selection change.
- Field coordination with another trade.
The reason does not have to be long, but it should be specific enough to explain why the original scope changed.
Cost impact
Show the price change clearly.
Labor: $___
Materials: $___
Equipment or rental: $___
Subcontractor cost: $___
Overhead and profit: $___
Tax: $___
Total change: $___
Some contractors show only the total. Others show a breakdown. The right level depends on the project and customer relationship, but the approved amount should never be ambiguous.
If the change is a credit, show it as a negative number and state how it affects the contract total.
Schedule impact
A change order should say whether the work affects time. Even small changes can delay inspections, material delivery, or the next trade.
Schedule impact: ___ calendar days
Reason for schedule impact:
If there is no schedule impact, write “No schedule impact expected.” That is clearer than leaving the field blank.
Updated project total
Show how the change affects the overall contract value.
Original contract amount: $___
Previously approved change orders: $___
This change order: $___
Revised contract amount: $___
This prevents confusion when several changes happen over the life of a project. The customer can see how the current number was reached.
Attachments and references
Attach anything that supports the change:
- Photos of hidden conditions.
- Revised drawings.
- Customer emails or selection notes.
- Supplier quotes.
- Subcontractor quotes.
- Inspection notes.
- Sketches or marked-up plans.
Attachments make the record stronger, especially when the change is discussed weeks or months later.
Approval language
End with clear acceptance language.
By approving this change order, the customer authorizes the scope, cost impact, and schedule impact described above. Work outside this change order remains excluded unless approved in writing.
Customer signature:
Date:
Contractor signature:
Date:
Digital approval is fine if your process records who approved it, when, and which version they approved.
Example change order
Change order: CO-003
Project: Lakeside kitchen remodel
Description: Add four recessed LED fixtures in kitchen ceiling and relocate two existing switch locations.
Reason: Customer requested additional lighting after drywall layout review.
Cost impact: +$1,475
Schedule impact: +1 working day
Revised contract amount: $58,925
Attachments: Lighting layout sketch dated 2026-06-02; customer approval email.
This example is short, but it includes the core facts: what changed, why it changed, what it costs, and whether it affects the schedule.
Change order best practices
Use these habits consistently:
- Get approval before starting extra work.
- Keep change orders separate from casual text messages.
- Reference drawings, photos, or selections when possible.
- Track credits as carefully as additions.
- Keep a running total of approved changes.
- Mark rejected or voided changes without deleting the record.
A disciplined change order process keeps the project honest. It also gives both sides a shared record when scope, budget, and schedule move.
If your change orders are part of a larger GC and subcontractor workflow, see the Conduit vs ServiceTitan comparison for related project coordination considerations.