Change Order: What It Is, Template and How to Write One
By QuotApp Team · Published October 16, 2026 · Updated October 16, 2026
A change order is a written document, signed by both parties, that modifies the scope, price or schedule of work after the original quote or contract was accepted. It records exactly what changed, what it costs and how it affects the completion date. Without one, extra work turns into an argument at invoice time.
Change orders are associated with construction, but any service business working from an accepted quote needs them: a cleaning company adding a room, a landscaper switching plant material, a web designer adding pages.
When you need a change order
Write one any time the agreed work changes in a way that affects price, time or what the client will receive. Common triggers:
- Client-requested changes: upgrades, additions, different materials, moving a wall.
- Hidden conditions: rot, outdated wiring, unexpected rock, mold behind drywall.
- Code or inspector requirements that were not in the original scope.
- Deletions: the client removes part of the work and is owed a credit.
- Schedule changes: a delay or acceleration requested by the client, even with no price change.
If the change costs nothing and changes no dates, a dated email confirmation may be enough. If money or time moves, write a change order.
What a change order must contain
| Element | Why it matters |
|---|---|
| Change order number and date | Keeps a clear sequence (CO-1, CO-2) tied to the job |
| Reference to the original quote or contract | Links the change to the agreement it modifies |
| Description of the change | Specific enough that a stranger could tell what was added or removed |
| Reason for the change | Client request, hidden condition, code requirement |
| Cost breakdown | Labor, materials, subcontractors, markup, credits |
| Original contract amount and previous changes | Shows how the total got where it is |
| Revised contract total | The new number both parties agree to |
| Schedule impact | Days added or removed and the new completion date |
| Signatures and dates | Proof that both parties approved before the work proceeded |
Change order template
Copy this into your own document or the notes section of your quoting tool and fill in the brackets.
CHANGE ORDER
Change Order No.: [CO-#]
Date: [MM/DD/YYYY]
Project: [Project name / job number]
Project address: [Address]
Original quote/contract no.: [Q-####], dated [MM/DD/YYYY]
Contractor: [Business name, address, phone, license # if applicable]
Client: [Client name, address, phone, email]
DESCRIPTION OF CHANGE
[Describe exactly what is being added, removed or modified,
including materials, quantities, locations and specifications.]
REASON FOR CHANGE
[ ] Client request [ ] Unforeseen condition
[ ] Code/inspection requirement [ ] Other: [explain]
COST OF CHANGE
Labor: $[amount]
Materials: $[amount]
Subcontractors: $[amount]
Equipment: $[amount]
Markup ([%]): $[amount]
Credits (work removed): -$[amount]
Total this change order: $[amount]
CONTRACT SUMMARY
Original contract amount: $[amount]
Previously approved change orders: $[amount]
Contract amount before this CO: $[amount]
This change order: $[amount]
Revised contract amount: $[amount]
SCHEDULE
Days added/(removed): [#] working days
Previous completion date: [MM/DD/YYYY]
Revised completion date: [MM/DD/YYYY]
PAYMENT
[Payable with next progress payment / due on signing / added to final invoice]
All other terms of the original agreement remain unchanged.
Work on this change will begin only after both parties sign.
Contractor signature: ______________________ Date: ________
Client signature: ______________________ Date: ________Worked example: kitchen remodel
An illustrative job. The original contract for a kitchen remodel is $48,500, with substantial completion scheduled for Friday, June 12, 2026. CO-1, for an added under-cabinet light circuit, was approved earlier for $1,200.
The client now wants to upgrade from laminate to quartz countertops and add an outlet on the island. The contractor marks up costs by 20%.
| Line | Calculation | Amount |
|---|---|---|
| Quartz countertops, fabricated and installed (sub cost) | $4,200 + 20% markup | $5,040 |
| Credit: laminate countertops removed from scope | at original contract price | −$1,850 |
| Island outlet: electrician | 3 hrs × $95 = $285 | |
| Island outlet: materials | $45 | |
| Island outlet subtotal with markup | ($285 + $45) × 1.20 | $396 |
| CO-2 total | $3,586 |
| Contract summary | Amount |
|---|---|
| Original contract | $48,500 |
| Previously approved (CO-1) | $1,200 |
| Contract before CO-2 | $49,700 |
| CO-2 | $3,586 |
| Revised contract amount | $53,286 |
Schedule: quartz requires templating after cabinets are set and has a fabrication lead time, adding 4 working days. Revised completion: Thursday, June 18, 2026.
Notice the credit. Removing the laminate at its original contract price, not at cost, is what a client expects and what keeps the change order easy to sign.
How to price a change
There are three common ways to price changes. Your original contract or quote should say which one applies, so the client is not surprised.
Cost plus markup. Total your actual labor, materials, subcontractor and equipment cost for the change, then add a stated markup for overhead and profit. This is the most common and the easiest to explain. The markup calculator helps you check the numbers, and cost-plus pricing explains the approach in depth.
Unit prices. Agreed in advance for items whose quantity is uncertain: “$9.00 per sq ft of subfloor replaced” or “$85 per additional outlet.” When the change happens, you multiply. Unit prices make change orders almost dispute-proof because the rate was accepted before anyone knew it would be needed.
Time and materials (T&M). For changes that cannot be defined in advance, such as chasing a leak, bill actual hours at an agreed rate plus materials at cost plus markup. Put a not-to-exceed amount on T&M change orders so the client has a ceiling, and keep daily records of hours and materials. Use the labor cost calculator to make sure your T&M rate covers your loaded labor cost.
Price changes with the same care as the original estimate. Changes interrupt the job, add trips and paperwork, and often require re-sequencing other trades. The method in how to estimate a job applies to a change just as it applies to the original work.
Approval and signatures
Get the change order signed before doing the work. The longer you wait, the more the client’s memory of “we agreed to that” drifts.
Electronic signatures are fine for most change orders. In the US, the federal ESIGN Act of 2000 generally gives electronic signatures and records the same legal effect as paper ones for most commercial transactions, and most states have adopted similar rules. A signed PDF, an e-signature platform, or a click-to-accept link all work in most situations. Some contracts, such as public works, specify their own approval process, and home improvement rules vary by state, so check your contract and local requirements.
On site, a practical rule: if the client asks for a change in person, write it up the same day, send it for signature, and do not start until it comes back signed. If the work genuinely cannot wait, get at least an email saying “Approved, proceed” and follow with the formal change order.
Change order vs change directive vs amendment
| Change order | Change directive | Contract amendment | |
|---|---|---|---|
| What it does | Changes scope, price and/or schedule by agreement | Orders the contractor to proceed with a change before price or time is agreed | Changes any term of the contract, not just the work |
| Signed by | Both parties | Owner (sometimes architect); contractor may sign later | Both parties |
| Price agreed? | Yes | Not yet; settled later, often on T&M | Yes, if price is involved |
| Typical use | Most changes on any job | Urgent changes on larger construction projects | Payment terms, parties, dates, warranty or legal terms |
For most small contractors and service businesses, the change order is the tool you will use. Directives show up mainly on larger commercial projects with formal contract forms.
Avoiding change order disputes
- Put the change process in the original quote. One sentence such as “Changes to the scope will be documented in a written change order, priced at cost plus 20%, and signed before work proceeds” sets expectations from day one. Your quote template should already include it.
- Define scope tightly with exclusions so it is obvious when something is a change.
- Number change orders sequentially and show the running contract total on each one.
- Include schedule impact every time, even if it is “no change.” Delay claims are often harder to settle than price.
- Photograph hidden conditions before you fix them and attach the photos to the change order.
- List approved change orders on the invoice as separate lines. See quote vs invoice for how that looks.
FAQ
Is a change order legally binding?
A change order signed by both parties generally modifies the original agreement and is enforceable like the rest of it. An unsigned change order is much harder to enforce, which is why you get the signature before doing the work.
Who writes the change order?
Usually the contractor or service provider, because they price the work. On larger projects an architect or owner’s representative may issue it.
Can I charge for a change order that wasn’t signed?
You may still have a claim if the client clearly requested and accepted the work, but you will be arguing about it instead of invoicing it. Treat the signature as part of the job.
What markup is normal on change orders?
It varies by trade, contract and region. Whatever you use, state it in the original quote or contract so the client agreed to it before the first change came up.