What Is a Change Order? A Contractor's Guide
The short answer: A change order is a written amendment to a construction contract. It records a change in scope, price, or schedule, and both sides sign it. That signature is what makes the extra work billable. A verbal "go ahead" does not protect you when it is time to get paid.
What a change order is and why it matters
Every job has a contract. A change order changes that contract in writing, after both sides agree. It says what the work now includes, what it costs, and how it moves the schedule.
Here is the rule: the signed change order is what gets you paid for extra work. Not the conversation in the driveway. Not the text from the owner saying "sure, add the extra outlet." Those feel like a yes, but when the final bill lands, "I never agreed to that price" is a hard thing to fight without a signature.
A change order closes that gap. It turns a verbal change into a documented, priced, signed addition to the contract. Both sides know the new total before the work happens, so the invoice is no surprise. That protects you, and it protects the owner from a bill they did not see coming.
What goes on a change order
A good change order answers five questions. Miss one and you leave room for a fight later.
| Part | What it covers |
|---|---|
| Scope of the change | Exactly what work is being added, removed, or altered |
| Cost adjustment | The dollar amount this change adds to or subtracts from the contract |
| Schedule impact | How many days this adds to the completion date, if any |
| New contract total | The original contract price plus or minus this change |
| Signatures and date | Both parties sign and date it before the work starts |
Keep the scope line concrete. "Reroute waste line for relocated island sink, including patch and inspection" beats "plumbing changes." The clearer the scope, the harder it is for anyone to claim later that the price covered something it did not.
The change order process
The process is short, and following it in order is the whole point.
- Request or proposal. Someone flags a change. The owner asks for an upgrade, a hidden condition shows up, or a plan was wrong. You write up the change and price it.
- Pricing. You put a number on it: labor, materials, and the schedule hit. This becomes the change order amount.
- Approval and signature. The owner or GC reviews the price and signs. You sign too. Now it is part of the contract.
- Then the work. You do the work, and you bill it on the next draw.
The order matters. Signature comes before the work, not after. Do the work first and you are back to relying on a verbal yes, which is exactly the trap a change order exists to close. For a step by step walkthrough with wording, see how to write a change order.
Types and related documents
Most change orders fall into two buckets, and one related document gets confused with them.
Additive vs deductive. An additive change order adds work and money to the contract. A deductive change order removes work and lowers the total, like when an owner cuts the tile budget to stay on plan. Same form, opposite sign on the dollar amount.
Change order vs change directive. A change order is signed by both sides before the work. A change directive (sometimes a construction change directive) is when the owner orders you to start work before the price is agreed, usually because the job cannot wait. You proceed, track your actual cost, and the price gets settled into a formal change order afterward. A change directive keeps the job moving, but it carries more risk for you, so document your costs carefully.
You may also hear "extra work order," which is just another name for the same idea: a written, agreed addition to the contract.
Who signs a change order
Both parties to the contract sign. If you contract directly with the owner, that is you and the owner. If you are a sub, it is you and the GC who hired you. Whoever signed the original contract is whoever signs the change to it.
Get the signature from the person with authority to approve the spend. A site super waving you on is not the same as the owner signing the price. When in doubt, the rule is simple: no signature, no change order, and a much harder time getting paid.
What controls the rules
There is no national change order form and no statute that dictates one. Change orders are contract law, not statutory like a lien. The rules that bind you live in your own contract.
Most construction contracts have a change order clause. It spells out how changes get requested, who can approve them, how fast you have to submit, and what happens if you do extra work without an approved order. Read that clause before the job starts. If it says no payment for unapproved changes, that is the rule on your job, and a handshake will not override it. Follow your contract's change order clause, every time.
- A change order is a written, signed amendment to a construction contract covering scope, price, and schedule.
- The signed change order is what gets you paid for extra work; a verbal go-ahead does not.
- Get it signed before the work starts, by the person with authority to approve the cost.
- There is no statutory form: your contract's change order clause sets the rules, so follow it.
A change order is the contractor's own contract document, so the controlling rules come from your own agreement. Follow your contract's change order clause. This is general information, not legal advice.