A change order is a written agreement that modifies the original project scope, price, or schedule after the baseline estimate or contract was accepted. It protects both the contractor and the client by documenting what changed and who approved it.
Last updated: August 10, 2026
Without a digital approval trail, verbal “go ahead” moments erase margin. Painters discover extra primer. Flooring crews find soft subfloors. Roofers uncover bad decking. Each surprise looks small until unpaid extras stack up.
Pair change orders with estimate version history so you always know which baseline the change applies to—and so clients cannot claim they never saw the original numbers.
Send the change order before the extra work starts whenever possible. Negotiating after materials are installed is how specialty contractors donate margin.
Approved change orders should increase both sold price and cost in your live job view. If your spreadsheet only tracks the original bid, margin looks healthy until closeout—then the extras show up as free work.
Use change order software that rolls approvals into job costing automatically, or at least update budget vs actual the same day the client says yes.
A change order is a written agreement that modifies the original project scope, price, or schedule after the baseline estimate or contract was accepted. It documents what changed, the cost and price impact, and who approved it.
Typically the property owner or authorized client representative. Keep a dated approval record—signature or digital approval—so both sides share the same scope and price.
Before the extra work starts whenever possible. Once labor and materials are in the wall, negotiating price gets harder and unpaid scope creep erodes margin.
A change order should reference the accepted estimate baseline. Version history proves which quote the change applies to, so clients cannot claim they never agreed to the original numbers.