Change order template
A change order is a signed record that changes a job's scope, price or schedule after the estimate was accepted. It lists the change, the cost added or credited, the new total and the new completion date.
A filled-in example
Change order #3 to Estimate #1042. Adds $640 and 1 working day. Revised contract total: $15,140.
Bayview Tile and Bath
office.bayview@example.com · (555) 010-4127
Change order
CO-3
Prepared for
Carmen Ruiz
Valid until
October 20, 2026
Estimate total
$640.00
| Description | Qty | Amount |
|---|---|---|
| CO #3: Recessed shower niche, framing and waterproofing | 1 | $380.00 |
| CO #3: Tile for niche, labor and materials | 1 | $260.00 |
- Total
- $640.00
Change order #3 to Estimate #1042. Adds $640 and 1 working day. Revised contract total: $15,140.
What does a change order include?
A change order should stand on its own, so anyone reading it later can see what changed and who agreed. Number each one and tie it to the original estimate or contract.
Both sides should sign and date it. A signature, or a written approval such as an online acceptance or an email reply that names the change order, shows the client agreed to the new price before the work was done. Some states require changes to home improvement contracts to be in writing and signed, so check your state's rules.
| Field | What to write | Example |
|---|---|---|
| Change order number | A sequential number for the project | CO #3 |
| Original estimate or contract | The number and date of the accepted price | Estimate #1042, accepted March 3 |
| Description of change | What is added, removed or substituted, and why | Add recessed tile niche in shower wall at owner's request |
| Price change | Labor and materials for the change, as an add or a credit | Add $640 |
| Revised contract total | Original total plus all approved changes | $15,140 |
| Schedule impact | Days added, or no change | Adds 1 working day |
| Approval | Names, signatures and dates for both sides | Owner and contractor, March 21 |
When should I use a change order?
Use one any time the work or the price moves away from what the client accepted. That includes client requests, hidden conditions you find after opening walls, material substitutions and allowance overages.
Write it before you do the extra work, not after. A change order signed after the fact is better than nothing, but a client is more likely to dispute a charge they first hear about on the invoice. Even a small change, such as moving an outlet, is worth a one-line change order on a busy job.
How do I price a change order?
Price it the way you priced the original estimate: labor hours at your rate, materials at cost plus your usual markup, and any added equipment, disposal or permit costs. Include overhead and profit, since the change takes your time like any other work.
For removed work, show a credit and the lower total. If the size of the change is uncertain, such as rot repair you can't fully see yet, agree on a unit price, for example per sheet or per linear foot, and bill the actual quantity once the client approves the rate in writing.
How do I add approved changes to the invoice?
Add each approved change order to the next invoice as its own line, labeled with its number, such as 'CO #3: shower niche, approved March 21.' Keep the original estimate lines unchanged, so the client can trace the total from estimate to change orders to invoice.
In Invoicefy, convert the accepted proposal to an invoice in one click, then add each approved change as a new line before you send it. If you bill in stages, put each change on the invoice for the stage when the work was done.
Questions people ask
It should be approved in writing by the client before the work is done. A signature is best, and an email or online approval that clearly names the change order is far better than a verbal okay. Some states have specific rules for home improvement contracts, so check yours.
You can, but verbal approvals are a common source of billing disputes. Put even small changes in writing, and if you started on a verbal okay, send the written change order the same day.
A change order modifies an accepted job, so it references the original price and shows the new total. A new estimate is for separate work. If the client asks for an unrelated project, quote it on its own with the free generator.
Write it the same way, with the removed work and the credit amount, and show the lower revised total. Apply the credit on the next invoice so the client sees it.
If it adds or removes time, yes. Write the number of days added, or 'no schedule change,' so a later delay can't be blamed on work the client added.
Send the proposal, then bill it in one click.
Save your clients and items in a free Invoicefy account, send a link by email or text, and let reminders follow up.
