Change orders happen on almost every project. The key is handling them professionally from day one:
Without a signed change order, you have no legal standing to collect for extra work. Courts consistently rule in favor of clients when contractors fail to document scope changes properly. A verbal "okay" is not enough.
Make it a policy: no additional work begins until the change order is signed. If the client is impatient, explain that this protects them too—they won't be surprised by charges they didn't agree to.
As soon as you identify work outside the original scope, pause. Take photos if applicable. Write down exactly what the change involves.
Price the change order the same way you price estimates: materials + labor + overhead + profit. Never discount change orders to "keep the client happy."
Create a formal change order document showing the new work, additional cost, and any timeline impact. Reference the original contract.
Both parties must sign the change order. No signature = no work. This is non-negotiable for protecting your business.
Add the change order to your project file. Update the total contract value and adjust the payment schedule if needed.
EZcontractPRO includes built-in change order functionality. Create addendums directly from your estimate, get electronic signatures immediately, and automatically update project totals. No more paper shuffling or disputes.
Start Free 30-Day TrialReal questions from contractors like you, answered by experts and peers.
How do you handle change orders when the client is the one who made the mistake in the original scope?
Document everything. If the client approved the original scope in writing, the change order should note that this is a client-requested modification. Be diplomatic but protect yourself.
28Been there. I now require clients to initial every page of the scope document. Saved me twice already this year.
14What's a reasonable markup on change order work? I've heard some guys charge 20% more than their regular rates.
15-25% premium on change orders is standard in the industry. The extra covers disruption to your schedule, re-mobilization, and the fact that you're doing smaller-scope work. Just be upfront about it in your original contract.
22Client wants to add a bathroom mid-project. Do I need a whole new contract or just a change order?
A change order is perfect for this. It references your original contract but documents the additional scope, cost, and timeline. Make sure both parties sign before starting the new work.
18Have a question about change orders?
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