How to record a change order
- Enter the original contract sum and the net of any earlier approved change orders.
- List each change. Added work increases the price; credits for removed work reduce it.
- Record the schedule impact in working days and the reason for the change.
- Print or download and get it signed before the changed work starts.
How the revised sum is calculated
Contract before = original sum + earlier approved changes
Net change = added work − credits
Revised contract sum = contract before + net change
Worked example
A $12,000 deck with one added item and one credit
- Added: composite stair railing, $850.
- Credit: owner supplies the post cap lights, $200.
- Net change = $850 − $200 = +$650.
- Revised contract sum = $12,000 + $650 = $12,650.
What to record on every change order
| Item | Why |
|---|---|
| Number and date | Keeps changes in order and easy to reference on invoices |
| Clear description | Exactly what is added, removed or substituted |
| Price of each change | So the owner sees what each decision costs |
| Revised contract sum | One agreed total going forward |
| Schedule impact | Avoids disputes about the finish date |
| Signatures and dates | Shows both sides approved before the work |
Common mistakes to avoid
- Verbal changes. "Go ahead" in the driveway is hard to bill later.
- Forgetting credits. Removed work should reduce the price, and owners notice.
- No time impact. Extra work moves the finish date; say by how much.
- Doing the work first. Sign before you build.
Frequently asked questions
What is a change order?
A change order records a change to the agreed work after the contract is signed: added work, removed work (a credit), or a different material. It states the cost and schedule effect and is approved by the owner and contractor.
How do I calculate the revised contract sum?
Original contract sum, plus earlier approved changes, plus added work in this order, minus credits. $12,000 + $850 − $200 = $12,650.
Should a change order include time?
Yes. Extra work usually takes extra days. Recording the schedule impact on the same sheet avoids disputes about the finish date.
When should a change order be signed?
Before the changed work starts. Many contracts require written, signed change orders; work done without one can be hard to get paid for.
How do we sign the change order?
Download the PDF or print it. Each person signs on their own signature line and writes the date; the printed-name lines show who signs where, from the owner name and the contractor's name fields (untick the option under Adjust assumptions to leave it blank for handwriting). To sign without printing, open the PDF in an e-signature app such as Adobe Acrobat Reader (Fill & Sign).
Is this a legal form?
No. It is a clear record of the numbers and the agreed change. Your contract and state law may require specific wording or steps, so check them or ask an attorney.