📝 Change Order Management
Master change order pricing, documentation, and approval workflows. Stop leaving money on the table.
Key Principle
Never do extra work without written direction. Verbal approvals don't pay bills.
What Triggers a Change Order?
- Owner-requested changes
- Design errors or omissions
- Unforeseen site conditions
- Code or regulation changes
- Value engineering proposals
The Change Order Process
1. Identify & Document
The moment you identify a potential change:
- Take photos before disturbing existing conditions
- Write detailed field notes
- Identify the trigger (RFI response, owner request, field condition)
2. Send Written Notice
Most contracts require notice within 48-72 hours:
- Reference the contract clause
- Describe the change condition
- State you intend to submit a change order request
3. Prepare Pricing
Include all costs:
- Labor (with burden)
- Materials (with receipts)
- Equipment
- Subcontractor quotes
- Overhead & profit per contract terms
4. Submit COR
Your Change Order Request should include:
- Detailed scope description
- Reference to triggering event (RFI, directive, etc.)
- Cost breakdown
- Schedule impact (if any)
- Supporting documentation
5. Track & Follow Up
- Log submission date
- Follow up weekly
- Never proceed on verbal approval alone
Pricing Change Orders
Markup Guidelines
| Item | Typical Markup |
|---|---|
| Labor | 15-25% |
| Materials | 10-20% |
| Equipment | 10-15% |
| Subcontractor work | 5-15% |
Check Your Contract
Many contracts specify exact markup percentages. Using higher markups can result in rejected change orders.
Common Mistakes
- Doing work before approval — You'll never get paid
- Missing notice deadlines — Check your contract requirements
- Incomplete documentation — No photos = no proof
- Not including schedule impact — Time is money
- Verbal approvals — Get it in writing