How to Write a Change Order (With a Simple Template Checklist)

By Jeff, Jobsite Forms Company · Updated 2026-10-21 · 5 min read

Every contractor has heard it. "While you're here, can you also..." It's usually a small thing, so you do it, and nobody writes anything down. Then three or four of those small things add up, the final bill is higher than the estimate, and the customer says, "I never agreed to that."

A change order fixes this. It's a short written agreement, signed before the extra work starts, that says what's changing, what it costs, and how it affects the schedule. This guide shows you exactly what to put in one and how to make it a normal part of every job instead of an awkward conversation.

What a change order is (and isn't)

A change order is an amendment to your original contract or signed estimate. It changes the scope, the price, the schedule, or all three. Once both sides sign, it becomes part of the deal.

It isn't a new contract, and it isn't a bill. It's an approval. The bill comes later, on your next invoice, where the approved change orders are listed separately.

When you need one

Write one any time the work changes from what was agreed, for example:

• The customer adds work: another outlet, a bigger deck, upgraded tile.
• The customer removes work, which may lower the price.
• Hidden conditions show up: rotted subfloor, old wiring, a pipe in the wrong spot.
• The customer switches materials or fixtures after you've priced the job.
• An inspector or code requirement adds work nobody planned for.
• The schedule changes because of something the customer asked for.

A good rule: if it changes the price or the finish date, it gets a change order. Small no-charge changes are worth writing up too, marked "$0," so there's a record you were generous.

What to include

A change order doesn't need to be long. One page is plenty. Include:

1. Your business name and the customer's name.
2. Job address and original contract date or number.
3. Change order number. Number them in order: CO #1, CO #2. It makes invoicing and disputes much easier.
4. Date.
5. Description of the change. Be specific. "Install 2 additional recessed lights in the hallway, same model as the kitchen" is clear. "Extra lights" isn't.
6. Reason for the change. Customer request, hidden condition, code requirement. This matters later if anyone asks why the price went up.
7. Price of the change. Labor, material, and any other costs, or a single total.
8. Running contract total. Original price, previous change orders, this change, new total. Customers appreciate seeing exactly where the number stands.
9. Schedule impact. "Adds 2 working days" or "No change to completion date."
10. Payment terms for the change. Due on the next invoice, due now, or added to the final payment.
11. Signatures and dates from you and the customer.

Sample wording

Notice what it doesn't have: legal jargon. Plain language gets signed faster.

How to price a change

Change work is often less efficient than the original job. You may have to stop what you're doing, make another supply run, or redo something that was already finished. Price for that:

• Use your normal labor rate, not a discount. (Our hourly rate guide shows how to figure it.)
• Apply your normal markup to material. If you need a refresher, see markup vs margin.
• Include trips, disposal, permit revisions and any equipment rental.
• For unknowns like hidden damage, you can price it as time and material with a not-to-exceed number, so the customer knows the worst case.

Get it signed before the work starts

This is the most important rule, and the one that slips most often. Once the extra work is done, you have no leverage, and memories start to differ.

If the customer isn't on site, you don't need to wait days for a signature. Send a photo or PDF of the change order by text or email and ask them to reply "Approved." Then get a real signature at the next visit. Many contractors use a simple text like:

Save that reply. A dated written approval is far better than nothing. Check whether your state or your contract requires a signed change order for the change to be enforceable.

Set expectations at the start

The easiest way to make change orders painless is to mention them before the job begins. Put a short clause in your contract saying any change to scope, materials or schedule will be written up, priced and signed before the work is done. Then say it out loud at signing: "If anything changes, I'll write it up so we both know what it costs before I do it." When it happens later, it's just following the process you both agreed to.

Common mistakes

• Doing "small" extras for free and losing track of how many there were.
• Vague descriptions that leave room for argument.
• Not showing the running contract total, so the final bill surprises the customer.
• Forgetting the schedule impact, then getting blamed for finishing late.
• Starting the work before you have approval.
• Not listing approved change orders separately on the invoice.

Tie it into your billing

On each invoice, list the original contract amount, each approved change order by number, payments received and the balance due. When the customer can match every dollar to a signed page, there's very little to argue about. The get paid faster guide covers the rest of the billing process.

Frequently asked questions

Do I need a change order for a no-charge change?

It's a good idea. A $0 change order documents what changed and shows the customer you did something extra, which helps if questions come up later.

Can a change order lower the price?

Yes. If the customer removes work or picks a cheaper material, write a change order with a credit so the running total stays accurate.

What if the customer won't sign?

Don't start the extra work. Explain the price and the reason again, and offer options. If they still won't approve it, finish the original scope as contracted.

How many change orders is too many?

There's no limit. Lots of change orders usually mean the original scope was loose, so tighten the next estimate's descriptions and allowances.

General information, not legal advice. Contract and home improvement rules vary by state. Have a local attorney review your contract templates.