FREE Change Order Construction Template to Control Costs and Schedules

Changes are an unavoidable reality in construction. In fact, around 35% of construction projects experience at least one major change throughout their lifecyles.

What you plan for and what actually happens rarely line up. Sometimes the project owner will request additional work beyond the original agreed-upon scope. Or maybe the site conditions throw a curveball, making it difficult to finish the work at the price you agreed on.

When these changes arise, you'll need to request a change order. A change order helps you adjust to evolving project needs without renegotiating the entire contract. It also protects you from getting stuck doing extra work beyond what you agreed to, which is crucial if your client wants more but isn't keen on paying more.

In the following guide, we'll provide a brief overview of what a change order is and share a free, customizable change order construction template to help you streamline this critical project management process.

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Construction Change Orders in a Nutshell

A construction change order is a document that spells out any additions or subtractions from the original scope of work agreed upon by you and your client before the construction project kicks off.

It must be mutually agreed upon - typically in writing - by all relevant parties before any changes can be implemented on the jobsite. Whether it's between a project owner and general contractor, or a subcontractor and general contractor, everyone needs to be on the same page.

You might feel tempted to skip the paperwork and make a verbal "handshake" agreement with the client to quickly get started on new work. But this is a risky approach that leaves you vulnerable. Without a properly documented and signed change order, you might find yourself chasing down payment from a difficult client who disputes the additional work.

As the contractor, it’s your job to prepare these change orders, but there are usually a few other hands involved. Team members might help estimate the cost of the new work before handing it over to the project manager for approval and a final sign-off with the client.

And if you’re working with subcontractors, you’ll need to coordinate with them too, making sure everyone’s clear on the changes and how they’ll impact different parts of the construction and preconstruction planning process.

How to Use the Change Order Request Form

A change order form template helps you standardize the information captured in each change order. This cuts down on the disputes or delays that can pop up when requests are not thoroughly documented.

For this reason, your construction change order form needs to cover all the bases, so every change is documented, approved, and understood by all the parties involved. And that’s exactly what our free change order template is designed to do (grab it for free here.)

That said, here’s everything you need to include in your change order:

Include the necessary contact and project details

The first section of your template should nail down the basics - who's involved and what project you're talking about. If questions or disputes arise later (and they'll often do), this section provides a clear record of who was involved and when the change was initiated.

Our construction change order template includes:

• Contract number (unique identifier for the original contract)
• Name and contact details of the project owner.
• Name and contact details of the general contractor or architect overseeing the construction project.
• Project name and address
• Name and contact details of the contractor submitting the change order.
• Sequential number of the change order (e.g., Change Order 1, Change Order 2, etc.).

Record the key dates for the change order

Many contracts have specific timeframes for submitting change orders, and missing them can jeopardize your right to compensation. So, be precise with your dates. Include:

• Date of change order completion: This is when you finalize the change order details, not necessarily when the work starts or ends. Use this date as a reference for all subsequent timeline discussions.
• Notification dates: These dates are critical for keeping everything transparent and within the bounds of the contract. When was the change first noticed? When was it formally submitted for approval?

Describe the work changes in detail

A well-detailed change order explains what’s changing and justifies why the change is necessary. Clarity in this section can save you countless hours of back-and-forth later. The more detailed and well-supported your description, the smoother the approval process is likely to be.

Start with a detailed description of the changes in the original scope of work. Spell out what’s being added, removed, or altered. Include:

• Project modifications
• Material changes
• Equipment requirements
• Labor adjustments

Next, explain the reason for the change. Maybe you hit an unexpected obstacle, or maybe the design needed tweaking. Whatever the case, lay it out clearly because it helps in negotiating costs and getting potential time extensions.

Finally, back up your request with supporting documentation. Photos, drawings, written descriptions -- whatever it takes to paint a complete picture. This documentation strengthens your case for the change and provides a clear record for future reference.

Adjust the project schedule to reflect the changes

This section is where you outline how the proposed changes affect your construction project schedule.

How many extra days will this change take? What’s the new projected completion date? Any interim milestones that have shifted?

Break down how you arrived at these figures, considering factors like material lead times, crew availability, and workflow disruptions.

If the change impacts the overall project timeline, especially the critical path, include that information too. A side-by-side comparison of the old and new schedules can help everyone see the ripple effect.

Break down the financial impact of the change.

Every change order has a price tag, and this section is where you list out every single expense associated with it. Some of these expenses include:

• Labor costs
• Material costs
• Taxes and insurance
• Overhead costs
• Profit margin

If applicable, break down the project's cost on a unit basis. For example, if the change requires additional square footage of flooring, list the cost per square foot. This is especially useful for changes involving repetitive work or when the final quantities might fluctuate. It provides a clear basis for adjustments if the project scope changes again.

Update the total contract value to reflect the change.

Every change order shifts the overall contract value, and this is where you show exactly how much.

Here's what you'll need to do before you create change order forms:

• Outline the original contract
• Document the cumulative value of all previously approved change orders. This gives a running tally of how much the construction project has grown or shrunk with each change.
• Add the current change order cost. This is the financial impact of the change to the project scope you’re proposing right now.
• Calculate the new proposed contract value. This is the sum of the original contract value, all past change orders, and the current change order

Before you wrap things up, make sure there’s space for all the necessary signatures. You need the contractor, the owner, and any other key players to sign off. And if there are any specific terms or conditions tied to the change, spell them out clearly. Whether it’s payment terms or warranty details, outlining them helps avoid misunderstandings later on.

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