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📝 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.

The change order process
1
Identify and document
The moment you spot a potential change — take photos, write 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, state your intent to submit a COR.
3
Prepare pricing
Include all costs: labor with burden, materials with receipts, equipment, subcontractor quotes, and overhead and profit per contract terms.
4
Submit change order request
Package the detailed scope description, reference to triggering event, cost breakdown, schedule impact, and supporting documentation.
5
Track and follow up
Log submission dates, follow up weekly on pending CORs, never proceed without written approval, and maintain a running change order log.

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​

ItemTypical Markup
Labor15-25%
Materials10-20%
Equipment10-15%
Subcontractor work5-15%
Check Your Contract

Many contracts specify exact markup percentages. Using higher markups can result in rejected change orders.

Common Mistakes​

  1. Doing work before approval — You'll never get paid
  2. Missing notice deadlines — Check your contract requirements
  3. Incomplete documentation — No photos = no proof
  4. Not including schedule impact — Time is money
  5. Verbal approvals — Get it in writing

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