Construction Change Order Template: What to Include and Why It Matters
Learn what every construction change order should contain and download best practices for creating professional change orders.
What Is a Construction Change Order?
A change order is a formal document that modifies the original construction contract. It records changes to the scope of work, cost, and timeline — and requires approval from both the contractor and client before the work proceeds.
Without a proper change order, you're doing extra work on a handshake. And handshakes don't hold up when a client disputes the final invoice.
What Every Change Order Should Include
1. Project Information
Start with the basics: project name, address, contract number, date, and change order number (CO #001, CO #002, etc.). Sequential numbering helps you track how many changes have been made and reference specific COs later.
2. Description of the Change
Be specific. Don't write "additional tile work." Write "Install 48 sq ft of client-selected subway tile backsplash in kitchen, including thinset, grout, and edge trim. Tile: Daltile Rittenhouse Square in Arctic White."
The more specific your description, the less room for misunderstanding.
3. Itemized Cost Breakdown
Break down every cost:
- Materials: $X
- Labor: X hours at $X/hour
- Subcontractor costs (if applicable)
- Equipment rental (if applicable)
- Contractor markup/overhead
- Total additional cost
An itemized breakdown builds trust. Clients are far more likely to approve a change order when they can see exactly where the money goes.
4. Schedule Impact
Document how the change affects the timeline. "This change will add approximately 5 business days to the project schedule due to tile lead time and installation." Clients need to understand that changes don't just cost money — they cost time.
5. Impact on Contract Total
Show the running total: "Original contract: $150,000. Previous change orders: $8,500. This change order: $2,400. New contract total: $160,900."
6. Approval Signatures
Both parties must sign and date the change order before work begins. This is non-negotiable. An approved change order protects you legally; an unapproved one is just a piece of paper.
Common Change Order Mistakes
Doing the work before getting approval. It's tempting to just handle a small change and deal with the paperwork later. Don't. Even a $200 change should be documented.
Vague descriptions. "Misc. extra work" tells the client nothing and invites disputes. Be detailed.
Missing schedule impact. Cost is only half the picture. Always document the time impact.
Not tracking the cumulative total. Individual change orders seem small. The running total tells the real story.
Making Change Orders Painless
The best way to streamline change orders is to use software that lets you create them quickly, send them digitally for approval, and track the status. Tools like SpecNook let you create a change order in minutes, send it to your client's portal, and get one-click approval with a full audit trail.
The goal is to make change orders so easy that you never skip the process — even for small changes. That discipline protects your profit margin on every project.