How to Fill Out a Change Order (And Why Verbal Agreements Cost Contractors Money)

No construction project, renovation, or service contract proceeds exactly as the original estimate described. Clients change their minds. Hidden conditions emerge. Scope expands. Each of these changes represents additional work — and additional work not captured in a signed change order is work you may never get paid for.

Verbal agreements to do extra work are the single most reliable source of payment disputes in contracting. The conversation happens, both parties believe they understood the same thing, and then the invoice arrives and the client insists the work was included in the original price. A change order signed before the extra work begins eliminates this entire category of dispute.

What a change order is and why it matters

A change order is a formal amendment to the original contract or estimate. It documents a change in scope, a change in materials, a change in timeline, or any other modification to the original agreement. Once signed by both the contractor and the client, it becomes part of the contract — legally enforceable in the same way the original estimate is.

Every change order should be completed and signed before the additional work begins, not after. After the work is done, your leverage disappears. The client has what they wanted, and they now have every incentive to dispute what it cost.

What to include on every change order

Reference to the original contract

Start with the name of the project, the original contract or estimate number, and the date of the change order. This links the change order to the original agreement and establishes its legal context.

Description of the change

Describe specifically what is being added, removed, or modified. Be as precise as you would be in the original estimate scope. Not "additional electrical work" — but "supply and install one additional 20-amp dedicated circuit from the main panel to the kitchen island, including trenching, conduit, outlet installation, and panel connection."

Reason for the change

Briefly note why the change is occurring. Client requested addition, unforeseen site condition, engineer directive, or code requirement are all common reasons. This protects you if the client later disputes whether they authorised the extra work.

Impact on contract price

State the cost of the change clearly. Break it into labour and materials if your original estimate was itemised. If the change reduces the contract price (a client removing a scope item), document the credit. Show the original contract total, the change order amount, and the new revised contract total after the change.

Impact on project timeline

If the change affects the completion date, document the number of days being added (or removed) and the new projected completion date. This protects you from claims that you caused a delay if additional work pushed the schedule out.

Signatures and date

The change order must be signed and dated by the client before work begins. No signature means no authorisation. Do not proceed with additional work on a verbal yes — get it in writing first.

How to handle clients who resist signing change orders

Some clients push back on change orders, particularly for smaller additions. "It's just an extra outlet — do you really need a form for that?" The answer is yes, always. The form is not bureaucracy. It is your protection.

Frame change orders professionally: "I document all scope changes so we are both clear on what is included and what the final invoice will look like. Let me send this over and as soon as you sign it, we will get started on the extra work." This positions the change order as a service to the client — clarity — rather than something you are doing defensively.

If a client absolutely refuses to sign and insists the work is urgently needed, your options are to proceed at risk (knowing you may face a payment dispute) or decline to do the extra work until it is documented. For larger additional scopes, it is always worth pausing work rather than proceeding without documentation.

Change orders for subcontractors

If you are a general contractor and you need a subcontractor to perform additional scope, issue them a written change order in the same way. Verbal directions to subs create the same disputes. A subcontractor who does extra work on your verbal say-so is going to invoice you for it — and if you have not documented it, you are caught between paying the sub and collecting from the client without written authorisation.

Store every change order with the project file

Change orders are part of the project contract. They belong in the same file as the original estimate, signed contract, invoices, and any correspondence about the project. In the event of a payment dispute, your complete documentation — original estimate, all change orders, invoices, and receipts — is what wins the case.