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Change order: how to document a scope change before the work starts

The handshake that says "just add it" is the most expensive sentence in project work. The change order turns it into a number and a date.

By Procurement VMS Editorial TeamReviewed by Michael, Procurement Advisor ExpertUpdated 4 minute read

On this page
  1. What a change order is
  2. Fields on a change order form
  3. Approval flow
  4. Where change orders go wrong
  5. Frequently asked questions

Key takeaways

  • A change order is a written agreement to change the scope, price or schedule of work already contracted.
  • It states what changes, the effect on cost and time, and who approved it.
  • Approve before the work starts. Retrospective change orders are where disputes begin.
  • Keep a running log so the total of all changes against the original price is always visible.

Free PDF and Excel: Change order form and running change log. Get it below

What a change order is

Definition

A change order is a document, signed by both parties, that modifies the scope, price or schedule of an existing contract or statement of work.

It is common in construction, facilities work and IT projects. The original contract sets a price for a scope. When something changes, because the customer asked or because conditions on site differ, the change order records the new scope, the extra cost and any shift in dates. It becomes part of the contract.

Made-up example, for illustration only

A company fits out an office under a fixed-price contract. Midway through, the facilities head asks for six extra data points in the meeting rooms. The contractor prices the work at 3,900 and two extra working days and issues change order CO-03.

The facilities head signs before work starts. At the end the total of three change orders is 11,200, visible against the original contract of 140,000, and nothing is a surprise in the final invoice.

Fields on a change order form

What a change order should record
FieldWhat goes in itWhy it matters
Number, date, projectA sequential change order number, date and project reference.Keeps changes in order.
PartiesCustomer, contractor and the contract it changes.Ties it to the right agreement.
Description of changeWhat is added, removed or altered, with reference to drawings or the SOW.Prevents vague scope.
ReasonCustomer request, site condition, design error, regulation change.Useful if costs are disputed.
Cost impactAddition or deduction, with a breakdown.The number the customer approves.
Schedule impactDays added or removed, and new completion date.Time costs money too.
Revised contract totalOriginal price plus approved changes to date.Shows cumulative drift.
ApprovalSignatures and dates of both sides.A change order unsigned is only a request.

Free PDF and Excel

Change order form and running change log

A change order form with cost and schedule impact, plus a log showing the revised contract total after every change.

  • Change order form
  • Approval checklist
  • Running change log
  • Excel log with cumulative total

Approval flow

  1. Someone raises a change request, either side.
  2. The contractor prices it and states schedule impact.
  3. The customer's project owner reviews and checks budget.
  4. Both sides sign the change order.
  5. Work begins and the change is added to the log.
  6. The invoice for the change refers to the change order number.

If scope changes often, the statement of work needs a better change control clause. For changes to legal terms rather than scope, see contract amendment.

Where change orders go wrong

  • Starting the work on a verbal approval.
  • Pricing with no breakdown.
  • Ignoring the effect on completion date.
  • No running total, so the project exceeds budget by small steps.
  • Different people approving on each side with no authority limit.
Before you sign a change order
  • Description references the drawing or SOW line.
  • Cost and time impact are both stated.
  • The revised contract total is shown.
  • Authorised signatories sign.
  • The invoice will cite the change order number.
  • The change log is updated.

Last checked: 19 October 2026. General contracting practice. Contract terms and local law decide the legal effect of a change order. Ask counsel for large changes.

Frequently asked questions

What is the difference between a change order and a change request?

A change request asks for a change. A change order is the signed agreement that makes it part of the contract.

Who signs a change order?

Authorised people on both sides, usually the customer's project owner and the contractor's manager, within their approval limits.

Can work start before the change order is signed?

It should not. Work started without approval is the main cause of payment disputes.

Is a change order the same as an amendment?

A change order is for scope, price and schedule. An amendment changes terms of the contract itself.

How are change orders priced?

Fixed lump sum, unit rates from the contract, or time and materials with a cap.

Where to read next

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Disclosure: Zapro AI appears on some comparison pages as an editor's pick, and the people behind this site have a professional connection to Zapro AI.

Written by

Procurement VMS Editorial Team

Our editors research each guide from vendor documentation, public pricing pages and buyer feedback, and name the sources on the page. Learn who the team is.

Reviewed by

Michael, Procurement Advisor Expert

Michael checks our guides for practical accuracy against how procurement teams buy and run software. Read his profile.

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