Net Cost Change
+$0.00
New Contract Total
$0.00
Schedule Impact
+0 days
12,800+ estimates calculated this month
Last updated: 2026-03-27
Quick Answer: What Is a Change Order Template?
A change order template documents any modification to the original construction contract - scope, price, or schedule. Both parties sign before the changed work begins. Average residential change orders run $1,500 to $5,000. Standard contractor markup on change orders is 15 to 25%. Never start changed work without a signed copy.
Why Every Contractor Needs a Change Order Template
Change orders are where contractors lose money or protect their margins. The difference comes down to documentation. A verbal agreement to "add a couple outlets" turns into a dispute when the client sees the final invoice. A signed change order with the cost spelled out beforehand turns that same request into billable work with zero argument.
This template gives you a professional change order you can fill out on the job site, print or save as PDF, and get signed before the extra work starts. It calculates the net cost change and updated contract total automatically so there is no math to second-guess.
How to handle change orders on your projects
The best approach is to define your change order process in the original contract. Include the markup percentage you will charge on changes, the approval process (written only, no verbal), and a deadline for the client to approve or reject. When a change comes up mid-project, document it immediately using this template. Do not start the changed work until both parties sign.
If you are managing multiple changes on the same project, use a change order log to track every change by number, date, and running contract total. For pricing the change itself, see our guide on how to price a change order without leaving money on the table.
Common change order mistakes contractors make
- Doing the work before getting a signature. Once the work is done, you lose all leverage. The client can dispute the cost or claim they never agreed to it.
- Not including schedule impact. A change that adds 3 days to the project affects your labor costs on every other task. Document the time extension so the client cannot claim you are behind schedule.
- Using vague descriptions. "Modify bathroom" is not a change order. "Remove existing 48-inch vanity, install owner-supplied 60-inch double vanity, relocate plumbing supply lines 12 inches left" is a change order.
- Forgetting overhead and markup. Change order work costs you the same overhead as original scope. A standard change order fee of 15-25% markup is industry standard and protects your margins.
Common change order scenarios and typical costs
| Scenario | Typical Cost Range | Schedule Impact |
|---|---|---|
| Owner-requested room addition or expansion | $8,000 - $30,000+ | 2 - 8 weeks |
| Hidden rot or water damage found behind walls | $1,500 - $8,000 | 3 - 10 days |
| Owner upgrades fixtures or finishes mid-project | $500 - $6,000 | 0 - 5 days |
| Electrical panel upgrade required by inspector | $1,800 - $4,500 | 2 - 5 days |
| Design error or drawing omission correction | $0 - $5,000 | 1 - 7 days |
| Asbestos or lead paint remediation required | $1,200 - $12,000 | 1 - 3 weeks |
Worked example #1: Owner requests a vanity upgrade
Mid-project, your client decides to swap the spec'd 48-inch single vanity for a 60-inch double vanity. Here is how you price the change order:
| Item | Amount |
|---|---|
| Credit for original 48" vanity (not yet installed) | -$420 |
| New 60" double vanity (owner-supplied) | $0 |
| Additional plumbing rough-in (second sink drain + supply lines) | $650 |
| Extra labor: 6 hrs at $65/hr (install + plumbing) | $390 |
| Subtotal | $620 |
| Contractor markup at 20% | $124 |
| Change Order Total | $744 |
Schedule impact: +1 day. The original contract was $28,500, so the new contract total is $29,244. Both parties sign before the plumber starts the second rough-in.
Worked example #2: Hidden rot found behind shower wall
During a bathroom remodel, your crew opens the shower wall and finds water damage in the studs and subfloor. This is an unforeseen condition, so the homeowner pays for the repair.
| Item | Amount |
|---|---|
| Remove and dispose of damaged studs and subfloor (3' x 5' area) | $280 |
| Lumber: (3) 2x4x8 studs + 3/4" plywood subfloor patch | $95 |
| Mold treatment and sealer | $120 |
| Framing labor: 8 hrs at $55/hr | $440 |
| Replace vapor barrier and cement board | $185 |
| Subtotal | $1,120 |
| Contractor markup at 20% | $224 |
| Change Order Total | $1,344 |
Schedule impact: +3 days. The framing needs to dry before tile work can continue. Document the rot with photos and attach them to the change order for your records.
Building change orders into your estimating workflow
The best time to think about change orders is when you write the original estimate. Include a change order clause in your contractor estimate template that spells out your markup percentage, approval process, and the requirement for written authorization. Define the scope of work tightly so there is a clear line between what is included and what counts as a change.
When the project starts and changes come up, this template handles the documentation. Fill it out, get it signed, and keep a copy for your records. Your future self will thank you when the final invoice matches the client's expectations.
Construction Change Order Guide
Best practices for documenting, pricing, and managing construction change orders.
What Is a Construction Change Order?
A change order is a formal written amendment to the original construction contract that modifies the scope of work, project cost, or timeline.
- Must be signed by both parties before work begins on the change
- Average residential change order: $1,500–$5,000
- Common triggers: Owner-requested upgrades, unforeseen site conditions, design errors, code requirements
Verbal change orders are the #1 cause of contractor-client disputes. Always document in writing, no matter how small.
Key Takeaways
- Must be signed before work begins
- Average residential change order: $1,500–$5,000
- Written documentation prevents disputes
How to Price a Change Order
Price change orders using cost-plus markup (15–25%) or a pre-agreed unit price schedule.
- Material cost: Actual receipts + 10–20% markup
- Labor cost: Actual hours × burdened rate + 15–25% overhead/profit
- Schedule impact: Add time extension if the change delays the critical path
- Equipment/rental: Pass through at cost + 10%
Include a change order clause in every original contract specifying the markup percentage and approval process.
Key Takeaways
- Standard markup on changes: 15–25%
- Include material receipts + labor hours
- Pre-agree on markup % in original contract
Essential Change Order Template Elements
Every change order must include 7 key elements to be legally enforceable and prevent disputes.
- Change order number (sequential tracking)
- Description of change (specific scope, not vague)
- Cost breakdown (materials, labor, markup — itemized)
- Schedule impact (days added or subtracted)
- Revised contract total
- Both parties' signatures and date
- Reference to original contract
Key Takeaways
- 7 essential elements for enforceability
- Itemized cost breakdown required
- Both signatures + date mandatory
How to Use This Calculator
Enter Project Details
Fill in the project name, client name, original contract amount, and change order number to establish the baseline for this change.
Describe Each Change
Add line items for each change with a description, type (addition, deletion, or modification), cost impact, and schedule impact in days.
Add the Reason
Document the reason for the change order. Common reasons include owner requests, unforeseen site conditions, design changes, or code requirements.
Print or Save as PDF
Preview the formatted change order showing the net cost change, new contract total, and schedule impact. Print or save as PDF for signatures.
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Frequently Asked Questions
What is a change order in construction?
A change order is a written document that modifies the original construction contract. It records changes to the scope of work, contract price, and project schedule. Change orders must be signed by both the owner and contractor before the changed work begins to avoid disputes.
When should you issue a change order?
Issue a change order whenever the project scope changes from the original contract. Common triggers include: owner-requested additions or modifications, unforeseen site conditions (hidden rot, bad soil, asbestos), design errors or omissions, and code requirement changes. Never perform changed work without a signed change order.
How do you price a change order?
Price a change order the same way you price original work: materials + labor + equipment + subcontractors + markup. Most contracts specify the markup percentage allowed on change orders (commonly 10-20%). Include any schedule impact costs. For deductions, credit the owner at cost minus the same markup percentage.
What should a change order include?
A complete change order should include: the change order number, project and contract reference, a detailed description of the change, the reason for the change, cost impact (additions and deductions), schedule impact in days, the new contract total, and signature lines for both parties.
Can a contractor refuse a change order?
Yes. A contractor can refuse to perform additional work if the change order terms are not acceptable. However, the contractor cannot unilaterally change the contract price or scope. Both parties must agree to the change order terms. If there is a dispute, the contract language and local laws govern the resolution process.
How do you track multiple change orders on a project?
Use a change order log to track every change order by number, date, description, cost impact, and approval status. The log shows the running contract total so both parties always know where the project stands financially. On projects with 3+ changes, a log prevents confusion about which changes have been approved and which are still pending.
What is a typical change order markup percentage?
Most construction contracts allow a 15-25% markup on change order work. This covers overhead and profit on the added scope. Some contracts specify a flat percentage, while others use a cost-plus method with agreed rates. Always define the change order markup in the original contract so there is no dispute when a change comes up.
Related Tools & Articles
- Change Order Log Template
- AI Scope of Work Generator
- Contractor Estimate Template
- Change Orders in Construction: The Contractor's Complete Guide
- How to Price a Change Order (Step-by-Step for Contractors)
- Change Order Fees: What to Charge and How to Structure Them
- How to Write an Estimate: A Contractor's Guide
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