What it's for
This change order form puts a change to the work in writing: what's added, taken out or changed, what it costs, how it moves the contract sum and the completion date, and a signature from each side.
It goes out on your letterhead to the owner, who signs beside you. Get it signed before the changed work starts: a verbal go-ahead leaves no record of the price or the days. Our guide to change orders that get paid covers notice, pricing and billing the change.
What's inside
Three Letter-size pages, with our logo, a credit link and the page number in each footer. The pale yellow boxes are yours to fill in, and nothing calculates.
Page 1. Your letterhead, with CHANGE ORDER, No. and Date on the right, then:
- PROJECT: PROJECT, OWNER and CONTRACT (TITLE AND DATE).
- DESCRIPTION OF THE CHANGE: WORK ADDED, DELETED OR CHANGED, LOCATION OR DRAWING REFERENCE, REASON FOR THE CHANGE and ATTACHMENTS, with a note on what to attach. Then PRICING METHOD, with boxes for Lump sum, Time and materials and Unit price.
- COST OF THE CHANGE: a table under ITEM, BASIS and AMOUNT. Its lines are Materials, Labor (hours × rate), Labor burden, Subcontractors, Equipment, Direct cost, Overhead, Total cost and Markup or profit, then a bright yellow Change order total row with a $ sign.
Page 2. CONTRACT SUM AND TIME, then APPROVAL, with one sentence: "Signed by both parties, this change order is agreed and becomes part of the contract." CONTRACTOR and OWNER each get lines for SIGNATURE, PRINTED NAME AND TITLE and DATE. The form doesn't decide whether a signed change order binds anyone.
Page 3. The worked example.
How to fill it in
- Type your details over the letterhead, replace YOUR LOGO with your logo, and save the result as your own change order template.
- Number each job's change orders in sequence at No., then fill in Date and PROJECT.
- Describe the change so someone who wasn't on site could price it: the work and quantities, the room or drawing sheet, and who asked for it or what you found.
- Type an X over one PRICING METHOD box. It sets what the cost table means:
- Lump sum: one fixed price. Fill in every line so the owner sees how you reached it.
- Time and materials: the owner pays for the hours and materials used. Put your rates and markup under BASIS, and label any amounts as an estimate.
- Unit price: a price per unit times the quantity, both under BASIS. If the unit price already carries overhead and profit, leave those lines blank.
- Under COST OF THE CHANGE, write what each amount rests on under BASIS. Direct cost is the sum of the five lines above it, and Total cost adds overhead to it. The worked example charges overhead on the direct cost and markup on the total cost. Type the total after the $. The change order calculator does the arithmetic, by markup or margin, and prints a page to attach.
- On page 2, do the arithmetic yourself:
- CONTRACT SUM BEFORE THIS CHANGE: the original contract plus or minus every change order already signed.
- THIS CHANGE (ADD OR DEDUCT): the Change order total, with a deduct marked plainly.
- NEW CONTRACT SUM: the first line plus an add, or less a deduct.
- DAYS ADDED OR REMOVED: 0 rather than a blank if the schedule holds. Say calendar or working days.
- NEW COMPLETION DATE: the completion date moved by those days.
- List the backup under ATTACHMENTS (quotes, time sheets, photos, the calculator's printout) and attach it. Have both parties sign under APPROVAL before the work starts.
The worked example
Page 3 holds the change order calculator's worked example, under a band that reads WORKED EXAMPLE (FOR REFERENCE; REMOVE BEFORE SENDING), with a note that links to the calculator. Its 35% labor burden, 12% overhead and 20% markup are example rates, not recommendations.
| Item | Basis | Amount |
|---|---|---|
| Materials | As quoted or taken off | $1,850.00 |
| Labor (hours × rate) | 24 hours × $32.00 | $768.00 |
| Labor burden | $768.00 × 35% | $268.80 |
| Burdened labor | Labor + labor burden | $1,036.80 |
| Subcontractors | As quoted | $0.00 |
| Equipment | As quoted or at your internal rate | $250.00 |
| Direct cost | Materials + burdened labor + subcontractors + equipment | $3,136.80 |
| Overhead | $3,136.80 × 12% | $376.42 |
| Total cost | Direct cost + overhead | $3,513.22 |
| Markup or profit | $3,513.22 × 20% | $702.64 |
| Change order total | Total cost + markup | $4,215.86 |
Frequently asked questions
Does the form calculate?
No. Every amount is typed, the totals included. The change order calculator does the pricing math.
Does it work in Google Docs or Pages?
Both open .docx files, and this one has no macros, form fields or content controls. Each app lays out Word files its own way, so check the page breaks.
Can I add cost lines or another signer?
Yes. The cost table and the signatures are ordinary Word tables: insert rows in the first, or copy the second and relabel it for another party, such as an architect.
Is it the AIA G701?
No. The layout and labels are our own, not a copy of AIA G701 or any other association's form. If your contract calls for a particular form, use that one.
Is it legal advice?
No. Apart from the approval sentence, the form has no terms, and it doesn't decide who must sign or what notice your contract requires. If you want your terms reviewed, ask your attorney.