Change Orders

When the scope of a job changes after work has started, create a change order. Change orders document additional work, adjust pricing, and keep a clear paper trail for you and your client.

What You’ll Learn

• What change orders are and when to use them
• How to create a change order from a job
• How change orders affect the final invoice
• Best practices for managing scope changes

What is a Change Order?

A change order is a billing adjustment tied to a job. It documents changes to the original scope of work, including:

• Additional work - New items added to the job
• Removed work - Items taken out of the original scope
• Price adjustments - Changes to quantities or pricing
• Scope clarifications - Updated descriptions or specifications

Change orders protect both you and your client by creating a written record of what changed and why.

When to Use Change Orders

Create a change order when:

• Client requests additional work mid-job
• You discover hidden conditions (rot, mold, structural issues)
• Materials need to be upgraded or substituted
• The original scope needs to be adjusted
• Work is removed from the job

Example Scenarios

Scenario 1: Discovery during work

You’re painting a house and discover water damage behind the trim. Create a change order for the repair work before proceeding.

Scenario 2: Client upgrade

The client decides they want upgraded countertops. Create a change order documenting the price difference.

Scenario 3: Scope reduction

Client removes the powder room from a bathroom remodel. Create a change order with a credit.

Creating a Change Order

From the Job Detail Page

1. Open the job
2. Navigate to the Change Orders section
3. Click New Change Order
4. Add line items for the changes:
   • Positive amounts for additions
   • Negative amounts for removals or credits
5. Add a description explaining why the change is needed
6. Click Create

Change Order Details

Each change order includes:

Line Items

Add line items just like an estimate:

• Description
• Quantity
• Unit price
• Type (materials or labor)

For additions: Enter positive amounts For credits: Enter negative amounts

Net Impact

The change order shows:

• Original job value - From the approved estimate or job line items
• This change order - Amount added or credited
• New job value - Updated total

Getting Client Approval

Change orders should be approved before you do the extra work.

Sending for Approval

1. Open the change order
2. Review all details
3. Click Send to Client
4. Client receives an email with a link to review

Client Approval

Your client can:

• Review the change order details
• See the impact on the job total
• Sign electronically to approve
• Reject with comments

After Approval

Once approved:

• The change order status updates to Approved
• The job value updates to reflect the change
• You can proceed with the additional work
• The change will be included on the final invoice

How Change Orders Affect the Final Invoice

This is the key thing to understand: approved change orders roll into the invoice you create from the completed job.

When You Complete the Job and Create an Invoice

The invoice includes:

1. All original line items from the job
2. All approved change orders as additional line items
3. Any deposit credits if the client paid a deposit on the estimate

How It Looks on the Invoice

Your client sees a clear breakdown:

The Math

Original Job Total            $8,000
+ Approved Change Orders      + $600  (net of all changes)
= Revised Job Total           $8,600
- Deposits Already Paid       - $4,000
= Final Invoice Amount        $4,600

Why This Matters

This approach gives everyone clarity:

• Client sees exactly what changed and why
• You have a paper trail of all modifications
• The final amount is accurate and justified
• No surprises when the final bill arrives

Change Order History

All change orders are preserved on the job:

1. Open the job
2. Go to the Change Orders section
3. See all change orders with:
   • Status (approved, pending, rejected)
   • Amount
   • Date

This history is valuable for:

• Disputes or questions later
• Understanding how the job evolved
• Learning for future estimates

Best Practices

Get Approval Before Starting Extra Work

Always document the change, send it to the client, and wait for their approval before proceeding. This protects you if there’s ever a disagreement about what was agreed to.

Be Specific in Your Descriptions

Explain why the change is needed:

• “Discovered rotted subfloor during tile removal”
• “Client requested upgraded fixtures”
• “City inspector required additional work”

Create Change Orders Immediately

Document changes as soon as they’re identified. Don’t wait until the end of the job to capture everything — you’ll forget details and amounts.

Communicate Clearly

Include photos when relevant. Visual documentation makes approvals faster and reduces disputes.

Track Everything

Even small changes should be documented. A few $100 changes add up over the course of a job.

Handling Rejections

If a client rejects a change order:

1. Review their comments
2. Discuss the concerns
3. Revise if needed
4. Resubmit for approval

If you can’t reach agreement:

• Document the conversation
• Consider whether to proceed with the original scope
• Get written acknowledgment of the decision

Related Articles

• Job Lifecycle - How change orders fit into the complete flow
• Creating Jobs - Set up jobs from estimates or standalone
• Editing Estimates - Modify before approval
• Creating Invoices - Bill for completed work