Change Orders
Manage mid-project scope changes. File, review, approve, and track change orders. Understand cost impacts, timeline adjustments, and the approval workflow.
Why Use Change Orders
Document scope changes and protect both parties
No surprises — change is documented and approved before work is done
Protects both parties — cost and scope are locked in writing
Audit trail — every change is traceable; no 'I thought we agreed to that' disputes
Automatic contract update — terms change, invoice reflects the change, no manual adjustment needed
Timeline visibility — clients see how changes impact their project completion date
Prevents scope creep — informal 'do this too' requests can't hide in the contract gaps
The 5-Step Change Order Process
From identifying a change to executing updated work
Identify Scope Change
Something needs to change from the original contract
- Client requests additional work (e.g., 'Add a bathroom outlet')
- Contractor discovers unforeseen conditions (e.g., 'Found asbestos, needs professional removal')
- Material or scheduling changes (e.g., 'Requested tile is out of stock, substitution costs $200 more')
- Any change that impacts cost, timeline, or scope MUST go through Change Order
File the Change Order
Document the change in the system
- Go to the project and click 'New Change Order'
- Title: 'Add master bathroom outlet' or 'Asbestos removal'
- Description: Explain why the change is needed and what it entails
- Cost Impact: +$500 or -$200 (price adjustment)
- Timeline Impact: +2 days or -0 days (schedule change)
- Reason: Client request, unforeseen condition, material substitution, etc.
Contractor Reviews & Approves
Contractor agrees to the terms and timeline
- Contractor gets notification of the Change Order
- They review the cost and timeline impact
- Click Approve if they accept, or Request Revision if they want to adjust
- If revision requested, client/contractor go back-and-forth until both agree
- Status: Pending → Approved → Rejected (if necessary)
Client Approves
Client confirms the change and authorizes the work
- If contractor approved, Change Order moves to Client Approval
- Client reviews the cost increase/decrease and timeline impact
- Click Approve to authorize the work and updated terms
- Click Reject if they want to abandon the change
- Once approved by both, contract is automatically updated and work proceeds
Work & Invoicing
Updated scope is reflected in the project
- Project timeline automatically updates with new end date
- New tasks (if needed) can be added for the additional work
- When contractor invoices, the Cost Impact is included in the invoice
- Client pays based on updated contract terms, not original quote
- Change Order is permanently linked to the project record for auditing
Types of Change Orders
Common reasons for scope changes
Client-Initiated Scope Addition
Example
Client wants to add a bathroom fixture, upgrade materials, or expand the work area
Cost Impact
Usually increases cost and timeline
Approval Flow
Contractor proposes terms → Client approves cost and timeline
Unforeseen Condition
Example
Contractor finds water damage, structural issues, asbestos, or hidden rot
Cost Impact
Usually increases cost and timeline (remediation is required)
Approval Flow
Contractor explains finding → Client approves the remediation scope and cost
Material Substitution
Example
Original tile is out of stock. Contractor suggests alternative at different price
Cost Impact
Can increase or decrease cost; timeline usually unchanged
Approval Flow
Contractor proposes alternative → Client approves the substitution
Scheduling Adjustment
Example
Weather delay, material shipment delay, or client request to accelerate timeline
Cost Impact
May affect cost (rush fees, etc.) and timeline
Approval Flow
Contractor explains reason → Client approves new schedule
Common Scenarios
Real change order situations
Mid-renovation, contractor finds black mold behind the wall. It needs professional remediation ($3,000, +5 days).
Contractor files a Change Order: 'Unforeseen mold remediation.' Cost: +$3,000. Timeline: +5 days. Reason: 'Health hazard, professional removal required.' Client reviews, approves (because fixing mold is non-negotiable). Contract updates. Timeline now ends 5 days later. Invoice will include the $3,000.
You (client) decide mid-project that you want to upgrade the tile to something fancier. It's $800 more.
You file a Change Order: 'Upgrade tile to premium option.' Cost: +$800. Timeline: +0 days (material swap). Contractor reviews and approves (or adjusts if different tile impacts installation time). Once both approve, the contract reflects the $800 increase. Next invoice will include it.
Original plan was to pour concrete on Day 10. Forecast shows rain. Contractor wants to delay 3 days.
Contractor files a Change Order: 'Delay concrete pour due to weather.' Cost: +$0 (no additional charge). Timeline: +3 days. Reason: 'Concrete requires dry conditions; proceeding would compromise quality.' Client approves the new schedule. Project now finishes 3 days later.
Client casually mentions they want to add a closet shelf. Contractor isn't sure if that's a formal request.
Contractor messages in Chat Hub: 'You mentioned a shelf — should I file a Change Order for it?' Client responds: 'Yes, please.' Contractor files: 'Add closet shelf.' Cost: +$200. Timeline: +0 days. Client approves. It's now documented. No ambiguity.
Contractor's original quote had granite counters at $3,000. That granite is now discontinued. Alternative granite is $3,500.
Contractor files a Change Order: 'Material substitution: granite option discontinued, upgrading to comparable alternative.' Cost: +$500. Timeline: +0 days. Reason: 'Original material unavailable.' Client reviews photos of the alternative. If they accept, approves. If not, client can request a different alternative.
What to Watch Out For
Common change order mistakes
Doing Work Without a Filed Change Order
The Problem
Contractor does additional work and later invoices for it. Client is surprised and refuses payment. Dispute.
The Fix
Contractor MUST file a Change Order before starting any scope change. This protects both parties. If cost/timeline are pre-approved, work proceeds smoothly and invoicing is clean.
Rejecting All Change Orders to Avoid Costs
The Problem
Contractor finds asbestos. Files a Change Order for $5,000 removal. Client rejects it. Contractor can't work. Project stalls.
The Fix
Not all changes are optional. If a Change Order is for health/safety (asbestos, mold, structural) or unforeseen conditions, rejecting it means the project can't proceed. Have this conversation early: 'What unforeseen conditions might arise, and what's the approval process?'
Forgetting to File Minor Changes
The Problem
Client casually says 'While you're here, can you caulk that corner?' Contractor does it. Later, it becomes a dispute: 'Was that included in the original contract or not?'
The Fix
Use Change Orders even for small, low-cost changes. It takes 2 minutes to file and eliminates ambiguity. Better safe than sorry.
Filing a Change Order Without Clear Cost Impact
The Problem
Contractor files a Change Order with description 'Miscellaneous' and cost '+$500.' Client asks 'What exactly am I paying for?' Contractor can't explain clearly.
The Fix
Change Orders need clear titles and descriptions. Be specific: 'Add outlet near sink (labor + materials): $200' or 'Upgrade paint finish (2 coats instead of 1): $300.' Clarity prevents rejection and disputes.
Changing Terms Outside of Change Orders
The Problem
You and contractor agree via phone call to extend the timeline 1 week. You don't file a Change Order. Later, contractor says 'No, I agreed to 3 days.' Dispute.
The Fix
Always file a Change Order in the system, even if you've already agreed verbally. Written record protects both parties. Phone calls are fragile evidence.
Stay On Top of Changes
File change orders as soon as you identify a scope change. Keep contracts in sync with reality.