TL;DR
A change order is a mini-contract for work that wasn't in the original contract: what changed, what it costs, how it moves the schedule, signed before the work happens. The free template below has seven sections. The number that should scare you into using it: contractors who run verbal change orders routinely eat 3 to 5 unbilled changes per job, and on a $40,000 remodel that's the entire profit margin walking out the door in "while you're here" moments. Paper the change, price it with margin (not a guilty discount), get the signature, then pick up the tool. Every time, including for good clients. Especially for good clients.
No document in contracting has a wider gap between how boring it sounds and how much money it moves. The original contract gets lawyered and negotiated; the changes, which on remodels commonly add 10 to 20% to the job's value, get handled in a driveway conversation. Here's the template, the pricing discipline, and the scripts for the awkward moments.
The seven sections of a change order
1. Reference to the original contract
Project name, client name, contract date, and a change order number (CO-001, CO-002). Sequential numbering matters more than it looks: it's how you and the client both track the running total, and it's what makes the paper trail legible if anything ever goes to dispute.
2. Description of the change
Specific enough that a stranger could tell what's different: "Replace planned 30-inch vanity with client-supplied 48-inch double vanity, requiring relocation of plumbing rough-in 14 inches left" beats "upgrade vanity." Include what's being removed from scope, since changes subtract as often as they add.
3. The price, itemized
Materials, labor, equipment, and any subcontractor costs, plus your markup applied the same way it was in the original bid. The classic leak is pricing change orders at cost out of guilt. Change work is more expensive per hour than contracted work, since it breaks sequence and interrupts crews, and it often means demo of finished work. If anything, it deserves a higher rate, and commercial GCs price it exactly that way. Get the markup math right with our markup vs margin guide, because a "20% markup" that you thought was 20% profit is how changes end up free.
4. Schedule impact
Days added, in writing, even when it's zero. The change the client forgot they asked for is the same change they'll remember when the job runs a week long.
5. Payment terms
When the change gets paid: commonly on signing for small changes, or added to the next scheduled draw for large ones. Changes above a threshold (many contractors use $1,000) deserve payment up front, since you're buying materials against them.
6. The no-verbal-changes clause
One sentence stating that no change is authorized until this document is signed, and that unsigned work proceeds at the contractor's risk. This clause belongs in your original contract too; the change order restates it as a reminder.
7. Signatures and date
Both parties, before work begins. Digital counts. A text message saying "yes go ahead" is better than nothing and worse than a signature; several states treat it inconsistently, so treat texts as the emergency fallback, not the system.
of a typical remodel's final value arrives as changes after contract signing. Whether that revenue carries margin depends entirely on paperwork discipline.
The three moments that cost contractors money
The "while you're here" ask. Small favor, open walls, client standing next to you. The script that works: "Happy to. Let me write it up so it's on the record, and I'll have the price to you tonight." Nobody has ever fired a contractor for that sentence. The favor that skips it becomes the precedent for the next five.
The mid-demo discovery. Rot, knob-and-tube, the surprise behind every wet wall. This is the one change order clients accept most easily, because it's visibly not your fault, and it's also where the photos matter: document the condition before touching it, attach the photo to the CO, and price the fix like the unplanned work it is.
The client-supplied material swap. The vanity from the internet arrives, it's a different size, and now the rough-in moves. The change order isn't for the vanity; it's for everything the vanity touches. Scope it fully the first time or you'll write three COs for one decision.
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Copy-paste template outline
| Field | What goes in it |
|---|---|
| Header | CHANGE ORDER #CO-___ · Project name · Original contract date |
| Requested by | Client / Contractor / Field condition |
| Description | Work added, work removed, materials affected |
| Price | Materials $___ + Labor $___ + Subs $___ + Markup ___% = Total $___ |
| Schedule | ___ days added to substantial completion |
| Payment | Due on signing / added to draw #___ |
| Signatures | No work proceeds on this change until both signatures are dated below. |
Build it once in whatever you already use. Every field service platform worth its subscription handles change orders natively (our Jobber and Housecall Pro pricing guides cover the tiers that include it), and a fillable PDF works fine at smaller volume. The tool matters less than the habit. This template pairs with the rest of the paperwork family: the contractor invoice template for getting paid, the subcontractor agreement for your subs, and the roofing contract template if that's your trade.
Frequently asked questions
What is a change order in construction?
A written amendment to a construction contract covering work added or removed after signing: the description of the change, its price, its schedule impact, and both parties' signatures. Once signed, it carries the same legal weight as the original contract. Unsigned changes are where contractor profit goes to die.
What should a change order template include?
Seven things: a reference to the original contract with a CO number, a specific description of the change, an itemized price with markup, the schedule impact in days, payment terms, a clause stating no work proceeds unsigned, and dated signatures from both parties. Photos of field conditions strengthen discovery-driven changes.
Can a contractor charge for work without a change order?
Collecting on verbal changes ranges from hard to impossible depending on your state and your evidence. Some states enforce verbal agreements in principle, but the burden of proving scope and price falls on you. The practical answer: charging for undocumented work costs you either the money or the relationship, and sometimes both. Sign first.
How much should I mark up a change order?
At least your standard bid markup, and there's a defensible case for more: change work breaks sequence and idles crews, and it frequently means redoing finished work. Commercial contracts commonly price change-order labor at premium rates for exactly this reason. Pricing changes at cost as a goodwill gesture is the most common margin leak in residential remodeling.
Do change orders need to be signed before work starts?
Yes, as policy without exceptions. The moment work precedes signature, your position inverts: you've delivered the value and are now negotiating to be paid for it. For genuine emergencies (active leak, safety issue), document with photos, stabilize, and paper the change the same day.
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