- Show cost by line and type, not a lump sum.
- Use the markups the contract allows.
- Always state schedule impact in days.
- Get it signed before the work, or get a written directive.
What a change order form must show
- The change, specifically, with the RFI, directive or revised drawing that caused it.
- The reason — owner request, design change, unforeseen condition, code requirement, error or omission. It decides who pays.
- Cost by line and type — labor, material, equipment, subcontract — with quantities and unit costs the owner can check.
- Markup at the rates the contract allows for each type (often different for self-performed and subcontracted work).
- Schedule impact in days. Many contracts treat a change order signed without a time extension as giving one up.
- Signatures and dates. An unsigned change is unsigned work in place, not revenue.
A priced example
CO-07 on Maple Street Medical Office: the owner adds four floor drains in the exam-room corridor.
| Cost item | Type | Qty | Unit cost | Cost | Markup | Amount |
|---|---|---|---|---|---|---|
| Plumber labor | Labor | 40 HR | $92 | $3,680 | 15% | $4,232 |
| Floor drains & trap primers | Material | 4 EA | $610 | $2,440 | 15% | $2,806 |
| Saw-cut & patch slab | Subcontract | 1 LS | $1,850 | $1,850 | 10% | $2,035 |
| Total | $7,970 | $9,073 |
Schedule impact: 2 days, because the slab work has to be done before the corridor partitions close. Reason: owner request — so the owner pays.
Why change orders get rejected or cut
- Lump sums with no backup. "Add floor drains: $9,073" invites a negotiation; the lines above invite a signature.
- Markup above the contract's rates — check them before pricing.
- Late notice. Most contracts require written notice within a set number of days of discovering the change.
- No time asked for. Ask for the days in the same change order; it is hard to add them later.
- Work done before approval without a written directive — leaving you to argue for payment afterwards.
Track every change from first notice to payment in the change order log — see change order management and the change order pricing calculator.
How to fill it in
- Give the change a number and describe it, citing the RFI, directive or drawing revision behind it.
- Add one row per cost item — labor, material, equipment, subcontract — with quantity and unit cost.
- Set markup to what the contract allows for each cost type; amount calculates.
- State the schedule impact in days — leaving it blank can waive a time extension under many contracts.
- Submit, and record who approved it and when. Filter Status = Approved for billing.
Everything an owner or general contractor needs to approve a change and everything you need to bill it: the change and its reason, each cost line by cost type with quantity and unit cost, markup, schedule impact in days, status and the approval — with cost and amount calculated.
17 columns: 12 you fill in, 3 picked from drop-down lists, so every row uses the same values and 2 calculated by formula and filled down 200 rows, so nothing is worked out by hand. In the Excel version, 6 columns reject entries of the wrong type (a date column only takes dates, an amount column only numbers), the header row stays frozen with filters on it, and the workbook opens on an Instructions sheet that lists every column below.
Every column, and how it is captured
| Column | Type | What goes in it |
|---|---|---|
| CO no. | Text | Change order number; every cost line of one change carries the same number. |
| Date | Date | Date of the entry. |
| Job | Text | Job number exactly as in your accounting system (e.g. J-1104), so rows join to job cost. |
| Description of change | Text | What is being added, deleted or changed, with the RFI or directive that started it. |
| Reason | Drop-down | Why the change exists — it decides who pays. Options: Owner request / Design change / Unforeseen condition / Code requirement / Error or omission. |
| Cost item | Text | One cost line of the change (e.g. 'plumber labor', 'floor drains'). |
| Cost type | Drop-down | Labor, material, subcontract, equipment or other. Options: Labor / Material / Equipment / Subcontract / Other. |
| Quantity | Number | Enter a number. |
| Unit | Text | Unit of measure (EA, LF, SF, CY, HR, LS). |
| Unit cost | Amount ($) | Enter the amount in dollars. |
| Cost | Calculated | Calculated: [Quantity] × [Unit cost] |
| Markup % | Percent | Markup the contract allows on this cost type, 0–100. |
| Amount | Calculated | Calculated: [Cost] × (1 + [Markup %] ÷ 100) |
| Schedule impact (days) | Number | Calendar days the change adds to the contract time (0 if none). |
| Status | Drop-down | Where the item stands; pick from the list so the log can be filtered and counted. Options: Draft / Submitted / Approved / Rejected / Void. |
| Approved by | Text | Name of the person who signed for the owner or GC. |
| Date approved | Date | Enter the date. |
See it on real-looking numbers
Constructelligence is a construction intelligence platform: it reads your ERP, project and field systems read-only and does this arithmetic every week, for every job. The demo runs it on a sample eight-job portfolio.
Try the demoJoin the private betaFrequently asked questions
What should be included in a construction change order?
A description of the change and what caused it, the reason, each cost line with quantity and unit cost by type, the markup, the total, the schedule impact in days, and signatures and dates from both parties.
Who signs a change order?
The owner (or the owner's representative) and the contractor, and on many projects the architect. A subcontractor's change order is signed by the general contractor.
What is a typical markup on a change order?
It is set by the contract, often 10–15% on self-performed work and a smaller percentage on subcontracted work. Check the contract before pricing; markup above the agreed rate is the first thing an owner cuts.
What is the difference between a change order and a change directive?
A change order is agreed by both sides, price and time included. A construction change directive instructs the contractor to proceed when the price or time has not been agreed, so the work is not held up.
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