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How to Write a Change Order (With Example)
How to write a change order: what to include, step-by-step instructions, a sample change order, and how to show approved changes on your invoice.
Almost every job changes. The customer wants an extra outlet, the wall hides rotten framing, or a fixture gets discontinued. Those changes are normal. What causes trouble is doing the extra work on a verbal "sure, go ahead" and then trying to bill it later.
A change order fixes that. It's a short written agreement that updates the scope, price, and sometimes the schedule of a job before the extra work happens. This guide shows how to write one, what to include, and how to carry it onto your invoice.
What is a change order?
A change order is a written amendment to an existing contract or accepted quote. It describes:
- What's being added, removed, or changed
- How the price changes (up or down)
- How the schedule changes, if at all
- That both sides agree
Once signed, it becomes part of the contract. It's different from a new quote, which covers a separate job. If you need a refresher on documents that come before the work, our Remodeling Invoice Guide shows how quotes, contracts, and change orders connect on a bigger job.
Why change orders matter
- They prevent disputes. The customer approved the price before you did the work.
- They protect your payment. Unapproved "extras" are the line items customers most often refuse to pay.
- They keep the schedule honest. If added work pushes completion back, the change order documents why.
- They may be legally required. Some states require changes to home improvement contracts to be in writing and signed. California's contractor licensing rules are one example. Check your state's licensing board.
This article is general information, not legal advice. Contract requirements vary by state; talk to an attorney or your licensing board for specifics.
What to include on a change order
- Your business name, contact details, and license number
- Customer name and job address
- Reference to the original contract or quote (number and date)
- Change order number (CO #1, CO #2) and date
- Description of the change, specific enough that someone who wasn't there understands it
- Reason for the change (customer request, hidden condition, code requirement, material unavailable)
- Price change, itemized for labor and materials if it's more than a small item
- New contract total, showing the original amount, prior changes, this change, and the revised total
- Schedule impact, in days, or "no change"
- Payment terms for the change: billed with the next draw, due now, or added to the final invoice
- Signatures and dates from both parties (an electronic acceptance or signed PDF usually works)
How to write a change order, step by step
1. Stop before you start the extra work
The most important step. Tell the customer what you found or what they asked for, and that you'll send a change order with the price.
2. Describe the change in plain language
Install two additional duplex outlets on the kitchen island, including wire, boxes, and devices. Customer request, July 9.
3. Price it the same way you priced the job
If the original job was itemized, itemize the change. If it was flat rate, give a flat price. Consistency makes it easy to approve.
4. Show the new contract total
Customers need to see how this change fits the whole job:
Original contract: $8,400 · Prior change orders: $0 · This change: +$385 · Revised total: $8,785
5. Note the schedule impact
"Adds 1 day" or "No schedule change."
6. Get it signed before doing the work
A signed PDF, an e-signature, or a written "approved" by email or text. Whatever you use, keep it with the job file.
7. Carry it onto the invoice
On the invoice, list the change order by number with its amount, and show the revised contract total.
Change orders are easier when you can write them on the spot. In SnipInvoice, quotes are free on every plan, so you can draft a quick quote for the added work from your phone while you're still standing in front of the problem, share it with the customer from your own phone, and convert it to an invoice once it's accepted. Voice drafting flags anything it isn't sure about rather than guessing a price. See how it works.
Example change order
All names, numbers, and prices below are fictional examples, not pricing guidance.
Example Electric & Remodel (fictional) · 8 Sample Way, Anytown, USA · License #EXAMPLE-E000
Customer: Jordan Example · Job: 90 Demo St, Anytown, USA
Change Order #: 1 · Date: July 9 · Original contract: #C-204, dated June 28
Description: Add two duplex outlets to kitchen island, including circuit extension.
Reason: Customer request.
| Item | Qty | Rate (example) | Amount (example) |
|---|---|---|---|
| Labor: run circuit extension and install outlets | 3 hrs | $95.00 | $285.00 |
| Duplex outlets, boxes, and covers | 2 | $22.00 | $44.00 |
| Wire and connectors | 1 | $56.00 | $56.00 |
| Change order total | $385.00 |
| Contract summary | Amount (example) |
|---|---|
| Original contract | $8,400.00 |
| Prior change orders | $0.00 |
| This change order | +$385.00 |
| Revised contract total | $8,785.00 |
Schedule impact: adds 1 day. Payment: billed on final invoice.
Approved: customer signature and date; contractor signature and date.
Example only. Sales tax, if any, applies per your state's rules.
Change order or new quote?
If the extra work is tied to the current job and changes its scope or price, use a change order. If it's a separate job (the customer wants the deck painted after you finish the fence), send a new quote instead. Keeping them separate makes each invoice simpler and keeps your contract total accurate.
Negative change orders (credits)
Change orders also work the other way. If the customer drops part of the scope or supplies their own fixture, write a change order with a negative amount. It keeps the contract total accurate and shows good faith.
Change orders on trade jobs
Changes come up in every trade. An electrician adding circuits, an HVAC tech finding a damaged line set, a roofer finding rotten decking: each should be documented before the extra work. See how they show up on trade invoices in our electrician, HVAC, and roofing guides.
Common change order mistakes
- Doing the work first and writing it up later. The customer never agreed to the price.
- Vague descriptions like "extra electrical work."
- No running total. Customers lose track after two or three changes.
- Forgetting schedule impact. Then the delay becomes your fault.
- Not numbering them. CO #1, #2, #3 makes the invoice and the paper trail easy to follow.
FAQ
What is a change order in construction?
A written, signed amendment to a contract that changes the scope, price, or schedule of the job.
Does a change order need to be signed?
It should be. A signature or written approval is your proof the customer agreed. Some states require written, signed change orders on home improvement contracts.
Can a text message count as approval?
It can work as evidence of agreement for small changes, but a signed document is stronger. Check your state's contract requirements (not legal advice).
How do I show a change order on an invoice?
List it by number with a short description and amount, then show the revised contract total and payments to date.
Can a change order reduce the price?
Yes. A credit or deductive change order lowers the contract total when scope is removed.
Who pays for changes caused by hidden conditions?
That depends on your contract. Many contracts say unforeseen conditions are billed as changes. Spell it out before the job starts.
Put every change in writing
A two-minute change order can save a two-week argument. Describe it, price it, show the new total, get it signed, then carry it to the invoice. To quote changes from the job site and turn them into invoices once accepted, try SnipInvoice. Quotes are free, and the Free plan includes 3 invoices a month.