Change orders: a remodeler's guide to getting them signed
A change order is a written, signed agreement to change a project's scope, price or schedule after the original contract is signed. The rule that saves remodelers the most money and stress is simple: no extra work starts until the client has approved a written change order showing what changes, what it costs and how it affects the finish date.
Most change order fights aren't about the money. They're about surprise. When clients know up front how changes work, and see each one in writing before work starts, they rarely object.
Why do change orders cause so much trouble?
Remodeling is full of legitimate changes:
- Client requests: "While you're in there, can we add a niche in the shower?"
- Hidden conditions: rot behind the tile, knob-and-tube wiring, a joist cut by a previous plumber.
- Selections over allowance: the client picks a tile that costs more than the allowance in the contract.
- Code or inspector requirements that weren't known at the estimate.
The trouble starts when these get handled verbally. The crew does the work to keep things moving, the owner means to "write it up later," and at the final invoice the client is surprised by a number nobody discussed. Now you're negotiating after the work is done, which is the weakest position you can be in.
What should your contract say about changes?
Set expectations before the first change ever comes up. Your contract should explain, in plain language:
- That changes to scope, materials or schedule require a written change order signed by the client before the work starts
- How change orders are priced (for example, at your standard rates, or cost plus a stated markup)
- Whether a change order can add days to the schedule
- How unforeseen conditions are handled
- How allowances work, and what happens when a selection goes over or under
Requirements for home-improvement contracts vary by state. Some states have specific rules about written change orders, cancellation rights or what a contract must include. Have your contract reviewed by an attorney who knows your state's rules.
What goes on a change order?
A good change order is short and specific:
- Project and change order number, such as CO-3.
- Description of the change, in plain words the client will understand.
- Reason, like "client request" or "hidden condition found on demolition."
- Line items with prices. A credit for removed work shows as a negative amount.
- Effect on the contract total: original contract, approved changes so far, this change, new total.
- Effect on the schedule, in working days.
- Payment terms for the change, if different from the main contract.
- Signature and date, with the terms the client agreed to.
Showing the running contract total on every change order is important. Clients often lose track of how small changes add up. Seeing the total each time prevents sticker shock at the end.
How do you have the conversation on site?
When a client asks for something new on site, the lead's job is not to price it on the spot. It's to:
- Acknowledge the request: "Great idea, that's doable."
- Explain the process: "Anything outside the original plan goes on a change order, so you'll see the price and timing before we do it."
- Note it in the daily log and pass it to whoever prices changes.
- Keep working on the original scope.
For hidden conditions, show the client the problem in person or with photos right away. "Here's what we found behind the tile. Here's what it means. We'll send a change order today with the options." A clear photo in a daily log makes these conversations much easier.
How fast should change orders go out?
Fast. The longer a change order takes, the more pressure there is to start the work without it. Aim to send it the same day or the next morning. A few things help:
- Price common changes in advance, such as moving an outlet or adding a recessed light.
- Let the lead draft the change order from the site with photos, and have the office price and send it.
- Send it electronically, so the client can approve it from their phone.
How do clients approve a change order?
The approval should be as easy as possible while still being a clear, written agreement:
- A link the client opens on their phone, showing the change, price and schedule effect
- A typed name and an "I agree" checkbox, and optionally a drawn signature
- A record of the exact terms shown at approval, with the date and time
Paper works, but it tends to sit on the kitchen counter for a week. Electronic approval often comes back the same day. Electronic signature rules can vary by state and contract type, so confirm with your attorney that your method fits your situation.
What happens after approval?
An approved change order should update everything it touches:
- The contract total, so the next invoice is right
- The budget, so job costing reflects the added cost
- The schedule, if it added days
- Progress billing, so the change is billed, either on its own or with the final invoice. See our guide to progress billing and retainage.
Treat an approved change order as final. If something needs correcting later, issue a new change order, which can be a credit, rather than editing the old one. That keeps a clean history.
What about changes that reduce the price?
Credits are change orders too. If the client removes something from scope, or picks a fixture under the allowance, write a change order with a negative amount. Clients appreciate seeing credits documented as carefully as charges, and it builds trust for the next change.
A change order checklist
- Contract explains how changes are requested, priced and approved
- No extra work starts without an approved change order
- Every change order shows description, reason, price, schedule effect and new total
- Leads note requests on site and pass them on; the office prices them
- Change orders sent the same day or next morning
- Client approves electronically with a record of the terms
- Approved changes update contract, budget, schedule and billing
FAQ
Should I charge for small changes? That's your call, but document them either way. Many remodelers write a $0 change order for small favors, so the client sees the value and there's a record.
What if the client refuses to sign but wants the work? Don't do the work until it's resolved. Explain that the process protects both of you. If it becomes a dispute, talk to your attorney before proceeding.
Can I add a fee for processing change orders? Some contractors include a change order fee in their contract. If you do, state it clearly up front.
How should I handle allowance overages? Treat the difference as a change order. If the client picks something under the allowance, it's a credit.
How ServFlo helps
ServFlo projects (Grow and Pro plans) include change orders numbered per project, with lines (including negative ones for credits) and schedule days. The client approves from a link or the customer portal with a typed name, "I agree" and an optional drawn signature, and the terms shown are stored with the approval. On approval, the contract total, budget and target end date update, and the change order is added to the project's progress billing. Crews can draft change orders from the technician app for the office to send. Selections over or under their allowance become change orders automatically. See pricing.