Glossary
What is a change order?
A change order is a written agreement, signed by the customer, that changes the work, the price or the schedule of a job after the original quote or contract was agreed. It says what changed and why, what it adds or credits, the new job total and any change to the schedule, and the customer signs it before the extra work starts.
Updated
The short version
- What it is: an amendment to the agreement you already have. The original quote stays as it was; the change order adds to it or takes from it.
- When you need one: any time the work, the price or the schedule moves after the customer agreed to the quote.
- Who signs it: the customer, before the work. On paper the contractor signs too.
- What it is not: a new quote for a new job, or a line added to the invoice without asking.
An example
Northline Painting is repainting the hallway at 118 Ash Crescent, Edmonton, AB for Emily Hall. The agreed quote was $5,460.00. After the first coat, the water stain on the hallway ceiling comes back, so the painter writes change order CO-04:
- Reason: The water stain on the hallway ceiling came back through the first coat. It needs a stain blocker before the color goes on.
- Added: Stain blocker, hallway ceiling, 1 at $255.00, $255.00
- This change: + $255.00
- New job total: $5,715.00
- Schedule: Adds 1 day to the schedule.
- Payment: Due with the final invoice, when the job is done.
Emily Hall signs it before the stain blocker goes on. The original quote stays as it was, the change order sits on top of it, and the final invoice shows both, so nobody is surprised. The change order template has this example filled in.
What goes on a change order
- Who and where: your company, the customer, the job and its address, and the original quote or contract it changes.
- The reason, in plain words, with photos when they help.
- Each line added, with quantity, unit price and amount, and each line taken out as a credit.
- The money: the original amount, earlier change orders, this change and the new job total.
- The schedule: no change, or the days it adds.
- Payment: with the next invoice, or a deposit before the work starts.
- The customer's signature and the date.
Kinds of change orders
- Adding work. More work and a higher total. Sometimes called an additive change order.
- Taking work out. Less work, or a cheaper material, shown as a credit that lowers the total. Sometimes called a deductive change order.
- No-cost changes. A different paint color, an outlet moved before the drywall goes up. The price stays the same, and a signed change still settles what was agreed.
- Asked for or found. The customer asks for more, or the job turns up something nobody could see at the quote: rot under the floor, old wiring, a code requirement. Both need the customer's signature; only the reason differs.
A change order and the other paperwork
| Document | What it does | When |
|---|---|---|
| Quote or estimate | Prices the job before it is agreed | Before the work |
| Contract | The agreement for the whole job | Before the work |
| Change order | Changes that agreement: the work, the price or the schedule | After the agreement, before the extra work |
| Invoice | Bills for the work done, signed change orders included | After the work |
On paper or on a phone
A paper or PDF change order signed on site works when the customer is standing there. When they are not, an electronic signature on their phone does the same job: in the US and Canada an e-signature generally counts like one on paper, as long as the customer agrees to sign electronically and you keep a record of what they signed. See Are e-signed change orders legal?
Changed is the phone version for contractors on Jobber: the tech writes the change order on site, the customer signs off from a link with no app or account, they get the signed PDF, and the change lands back on the Jobber job. See Change orders for Jobber, or How to do a change order in Jobber for every way to do it there.
Questions
Is a change order legally binding?
A signed change order becomes part of your agreement with the customer, so it generally binds the same way the original contract does. What matters most is that it is clear and signed before the work. This is general information, not legal advice; see Are e-signed change orders legal?
Who signs a change order?
The customer who agreed to the original quote, or whoever pays for the job. On paper the contractor signs as well. One clear signature from the right person beats several unclear ones.
When should a change order be signed?
Before the extra work starts. Once the work is done, the customer has little reason to agree to the price. See How to get a customer to sign off on extra work.
What else is a change order called?
A change order request, a contract change or an amendment. In the UK and Australia it is often called a variation. On a service job people often just say the extra work.
Do I need a change order for small changes?
If it changes the price, the schedule or what you are building, yes. Small changes are where most disputes start, and a one-line change order takes a minute.
Is there a free change order template?
Yes: our free change order template is a fillable PDF and a Word file, with no email needed.