Templates
Change Order TemplateWhat a Change Order Is & the Form Fields to Include
October 8, 202611 min readBy the Ardovia team
A change order is a written amendment to a signed construction contract that changes the scope, price, or schedule, and is signed by the customer and the contractor before the changed work is done. A change order form should include the contract and job references, a description of the change, its reason, line items with prices, the cost impact and new contract total, the schedule impact, payment terms, and signatures with dates.
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Free change order form template
A ready-to-use change order form with every field it needs: change number, description, reason, line items, contract summary, schedule impact, payment terms, and signatures.
No sign-up required. Free to use and edit for your business.
What is a change order?
A change order is a written agreement that modifies a construction contract after it has been signed. It records what is changing, how much it costs (or credits), and whether it moves the schedule.
Change orders exist because projects change. A homeowner upgrades a finish, an inspector requires extra work, or you hit rock during excavation. The change order turns that conversation into a signed document before anyone spends money.
A change order can increase the price, decrease it (a credit), or leave it at $0 while still changing the scope or schedule. All three should be documented.
When should you issue a change order?
Issue a change order any time the work, the materials, the price, or the timeline will differ from the signed contract. If you are unsure, write one — a $0 change order costs nothing and documents the agreement.
- Owner-requested changes: adding a feature, upgrading a selection, or moving something.
- Selection changes: the customer picks a different tile, finish, or fixture than the one in the contract.
- Allowance reconciliation: the final choice costs more or less than the allowance.
- Unforeseen conditions: rock, groundwater, buried debris, or other conditions excluded from the original price.
- Code or inspector requirements: work required by the building department that was not in the plans.
- Credits: scope removed from the contract, such as an item the customer decides to skip.
Change order form: the fields to include
Use this table as your construction change order form template. Every field is there to prevent a specific argument later.
| Field | What to enter | Why it matters |
|---|---|---|
| Change order number | A sequential number, e.g. CO-003 | Makes each change easy to reference and audit |
| Date | Date the change order is issued | Establishes when the change was agreed |
| Contractor & customer | Company name, license number, customer names | Identifies the parties bound by the change |
| Project & contract reference | Job address, job number, original contract date | Ties the change to the right contract |
| Description of change | What is added, removed, or substituted, with quantities | The scope of the change, in plain language |
| Reason for change | Owner request, unforeseen condition, code requirement, etc. | Shows why the price moved |
| Line items | Each item with quantity, unit price, and line total | Makes the price transparent and checkable |
| Change amount | Total increase, credit, or $0 | The cost impact of this change alone |
| Contract summary | Original contract, prior change orders, this change, new total | Keeps everyone aligned on the current project total |
| Schedule impact | Days added or removed, or "no change" | Prevents disputes over completion dates |
| Payment terms | When this amount is due, or which draw it is added to | Avoids confusion at billing time |
| Signatures & dates | Customer(s) and authorized contractor signer | Makes the change binding before work begins |
Change order template: example wording
Here is a filled-in example you can adapt. All names and numbers are hypothetical.
Change Order #CO-003 — Date: [date]. Project: Rivera residence, 118 Oak Lane. Original contract dated [date].
Description of change: "Add a 6' × 8' raised spa attached to the pool, including spa jets, a spillover into the pool, and an additional heater circuit. Replace the standard waterline tile with the owner-selected glass tile, [series/color]."
Reason: "Owner request."
Cost impact: "This change order increases the contract by $[amount]. Original contract: $[amount]. Previous change orders: $[amount]. This change order: $[amount]. New contract total: $[amount]."
Schedule impact: "This change adds an estimated [X] working days to the schedule."
Payment: "This amount is due [on signature / with the next draw / on completion of the change]."
Agreement: "By signing, the owner and contractor agree to the change in scope, price, and schedule described above. All other terms of the original contract remain in effect."
Step by step
How to price a change order
Price a change order with the same discipline as the original job. Rushed change orders are a common place for margin to leak.
- 1
Define the change precisely
Write the scope first: what is added, what is removed, and what is substituted. You cannot price a vague description.
- 2
Price the full cost of the change
Include materials, labor, equipment, subcontractor costs, permit or engineering revisions, and any rework of finished work. Do not forget the time to re-order, re-schedule, and supervise.
- 3
Credit what is removed
For substitutions, credit the original item and charge the new one. Show both lines so the customer sees the net difference.
- 4
Apply your normal markup or margin
Change-order work carries the same overhead as the rest of the job, so use your standard pricing method. Decide up front whether you price from current supplier costs or from the prices locked in at contract.
- 5
State the schedule impact
Even if the price is $0, note whether the change adds days. A change that delays the job is still a change.
Who signs a change order, and when?
Every owner who signed the original contract should sign the change order, along with an authorized person for the contractor. Get signatures before the changed work starts, not after.
Verbal approvals in the field are the most common source of change-order disputes. If a customer asks for a change on site, write it up the same day and send it for signature before the crew proceeds.
E-signature makes this practical. The customer can review and sign from a phone, and you get a time-stamped record of who signed and when.
How do change orders affect the contract total and draws?
Each signed change order adjusts the project total. A simple way to track it: original contract + net change orders = current project total. Credits reduce the total; $0 change orders leave it unchanged.
There are two common ways to bill change orders. Some contractors bill each change order as its own invoice, often due on signature or on completion. Others spread the change across the remaining draws or add it to a specific draw. Pick one approach, write it into the change-order clause of your contract, and state it on each change order.
Track change orders against your job budget too. If a change adds cost, it should also add revenue — otherwise your estimates vs actuals will show margin slipping with no clear reason.
Example: tracking the project total (hypothetical numbers)
| Item | Amount | Running total |
|---|---|---|
| Original contract | $80,000 | $80,000 |
| CO-001 — add spa | +$12,000 | $92,000 |
| CO-002 — remove deck lighting | −$1,500 | $90,500 |
| CO-003 — relocate equipment pad, no cost | $0 | $90,500 |
All figures are hypothetical and for illustration only.
Change order best practices
A few habits prevent most change-order problems.
- Put a change-order clause in the original contract that says changes must be in writing and signed. See our construction proposal template.
- Number change orders sequentially and keep them with the job file.
- Never start changed work on a verbal approval.
- Show the running contract total on every change order.
- Combine several small pending changes into one document when it makes sense, so the customer signs once.
- Add the new items to your materials list and purchase orders so the field builds what was sold.
Not legal advice
This change order template reflects general best practice, not legal advice. Requirements for written changes, signatures, and notices vary by state and by contract. Have an attorney review your change order form and contract language.
Managing change orders in software
Paper and spreadsheet change orders work until a signature gets missed or the project total drifts from what billing shows. Software keeps the change order, the signature, and the job financials in one place.
In Ardovia, change orders are created on the job with catalog or manual line items, each with a unit cost and unit price; credits are entered as negative prices. Changing a selection or editing a job's specifications can generate the change order automatically. Your organization can require homeowner sign-off separately for increases, $0 changes, and credits, signed in person on screen or sent for e-signature. Each change order moves the job's project total, its lines become job items for purchasing and job costing, and several unsent drafts can be merged into one.
Bell Residence
1420 Lakeshore Dr, Austin, TX 78701
Contract
$84,900
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Free change order form template
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Frequently asked questions
What is a change order in construction?
A change order is a written amendment to a signed construction contract that changes the scope of work, the price, or the schedule. It describes the change, states the cost or credit and any schedule impact, shows the new contract total, and is signed by the customer and the contractor before the changed work begins.
What should a change order form include?
A change order form should include a change order number and date, the contractor and customer names, the project and original contract reference, a description and reason for the change, line items with prices, the cost impact, a summary showing the new contract total, the schedule impact, payment terms, and signatures with dates from all parties.
Who signs a change order?
Every owner who signed the original contract should sign the change order, along with an authorized representative of the contractor. Signatures should be collected before the changed work starts, so there is no dispute later about what was agreed.
Can a change order reduce the contract price?
Yes. A change order can increase the price, reduce it with a credit when scope is removed, or leave it at $0 while changing scope or schedule. A credit change order should still be written and signed, because it changes what the contractor owes the customer.
How are change orders billed?
Contractors commonly bill each change order as its own invoice, due on signature or on completion of the change, or add the amount to one or more remaining draws. Either works; the important thing is to state the payment terms in the contract's change-order clause and on each change order.
Is a verbal change order binding?
It depends on your contract and your state's law, and verbal changes are hard to prove. Most construction contracts require changes to be in writing and signed, so the safest practice is to write up every change and get it signed before doing the work. This is not legal advice; consult an attorney for your situation.
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