How to write a contractor change order (with template and examples)
A practical, contract-safe template for writing change orders that customers actually approve — plus the three mistakes that cause most scope disputes.
If you do residential or commercial trade work, scope changes are not the exception — they're the
job. The wall opens up and there's old wiring. The owner asks for a different fixture. The
inspector requires extra blocking.
What separates contractors who get paid for those changes from ones who eat the cost is one
thing: a written change order, signed before the work happens.
This post is the template we'd give a new contractor on day one. It's short on purpose. The
goal is something you'll actually use, not something that reads like a law school exam.
What a change order has to include
Every change order needs eight things. Miss any of them and you're inviting a dispute.
Job reference. Original contract or proposal number, customer name, jobsite address. So
it's clear which job this change applies to.
Change order number.CO-001, CO-002. Sequential. Goes on every invoice tied to the
change.
Reason for the change. "Owner-requested upgrade", "Concealed condition discovered",
"Code requirement", "Material substitution". This is the single biggest predictor of whether
the customer signs. Customers approve scope changes when they understand why.
Description of work. What's being added, removed, or modified. One paragraph, plain
English. If it's a deletion, include the credit amount.
Materials and labor breakdown. Even if you only show totals, document the breakdown
internally. You'll need it if a dispute reaches mediation.
Price and tax. New total for the change. If there's no charge (e.g., goodwill swap),
write $0.00 explicitly.
Schedule impact. Days added to the schedule, or "no change to completion date." This is
the line most contractors forget — and it's the one that creates the worst arguments.
Signature lines. Customer signature, contractor signature, date. Both parties sign
before work begins.
A working template
Here's the structure we recommend. Copy and adapt to your trade and customer base.
CHANGE ORDER #CO-XXX
Date: [date]
Job: [original contract # / customer name / address]
REASON
[One sentence — owner request, concealed condition, code, etc.]
DESCRIPTION OF CHANGE
[2-4 sentences. What's being added or removed.]
MATERIALS
[Itemized list with quantities and prices, OR total]
LABOR
[Hours × rate, OR total]
OTHER (permit, equipment rental, subcontractor)
[Itemized OR total]
CHANGE ORDER TOTAL: $X,XXX.XX
SCHEDULE IMPACT: [N days added / no change]
ORIGINAL CONTRACT TOTAL: $X,XXX.XX
CHANGE ORDERS TO DATE: $X,XXX.XX
NEW CONTRACT TOTAL: $X,XXX.XX
This change order is part of and incorporated into the original contract dated [date].
All other terms remain unchanged.
Customer signature: ____________________ Date: __________
Contractor signature: __________________ Date: __________
If your customer is on a phone, a one-tap digital signature is much more likely to come back
signed than a printed PDF.
The three mistakes that cause most disputes
After hundreds of change order conversations with contractors, three patterns keep showing up.
1. Verbal approval without paper
The customer says "yeah, just do it" while you're standing in the kitchen. You do. Two months
later, when the bill comes, they don't remember saying that — or they remember a different
number. Without a signed document, you're arguing about what was said in a hallway.
Fix: "Great. I'll send a one-pager you can sign on your phone in 30 seconds, and I'll start
as soon as you do." Almost every customer accepts that. The ones who don't are the same ones
who would have fought the bill anyway.
2. No reason listed
A change order that says "Add extra outlet in basement: $375" with no reason looks like a
nickel-and-dime. Same line with "Add extra outlet in basement (per code inspector requirement
on 5/4 visit): $375" looks like a competent contractor handling a real-world problem.
Fix: One sentence on why. Always.
3. Missing schedule impact
You add a week of work but don't say so. The customer assumes the original completion date
still holds. When you don't make it, they feel deceived — even though you did the right
thing on cost.
Fix: Always state schedule impact, even when it's zero. "Schedule impact: none" is a
sentence that prevents arguments.
Examples by trade
Remodeling
CO-003: Replace damaged subfloor under bathroom tile.
Reason: Concealed water damage discovered after demo (photos attached).
CO-005: Upgrade from 16-SEER to 18-SEER condenser per owner request.
Reason: Owner requested higher efficiency unit after reviewing utility rebate eligibility.
Equipment delta: $+612
Labor: no change
Permit: no change
Total: $612
Schedule impact: none (in stock)
Where Novara fits
Novara handles change orders end-to-end: write the change order from the original job, attach
jobsite photos as evidence, send a one-tap approval link to the customer, collect a digital
signature, and roll the change into the next invoice automatically. The customer doesn't need
an account. You don't have to copy data between three systems.
If you're managing change orders by text and spreadsheets today, this is one of the workflows
you'll feel improve immediately.
Novara