Dr. Paul Borosky, DBA, MBA
Construction Guide · Change Orders
How to Write a Construction Change Order That Gets You Paid
Extra work is where profit goes to disappear. The customer asks, the crew does it, and nobody writes it down. This page shows how to put a price, a time, and a signature on every change before the work starts. Part of the construction business guide.
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Last Updated: 10/27/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
What Is a Change Order?
Textbook Definition
A change order is a written, signed agreement that changes the scope of work, the contract price, the contract time, or all three. The standard AIA form records the change, any price adjustment, any time adjustment, and signatures.
In Plain English
A change order is a short signed note that says: here is the extra work, here is the price, and here is how many days it adds. Without the signature, you are not billing. You are negotiating.
Why It Matters
Why Do Contractors Lose Money on Extra Work?
Extras are easy to say yes to and hard to collect. A 2026 survey from Clearstory and Dodge Construction Network asked 113 subcontractors about change orders. About 66% said they wrote off change order revenue in the past 12 months. About 92% said change orders are not always paid in full, and only 6% said all of them are. Clearstory sells change order software and the sample is small, so read it as a warning, not a national statistic. Source: Clearstory and Dodge.
The cause is almost always timing. The work gets done first, the price gets discussed later, and by then the customer remembers the job differently. “No extra work without a signature” is the first fix for Risk #6 in the book.
A written change order also protects your right to be paid. Florida’s lien law counts owner-authorized extras and change orders as part of the contract, which is why they appear in your lien paperwork.
Signs your change orders are broken:
- The customer asks, and the crew says “sure” and starts.
- You price extras after the work is done.
- You have a folder of change orders that nobody signed.
- Nobody can say how many days the extras added.
- You absorb small changes “to keep the peace.”
- The final bill is a surprise to the customer.
What It Looks Like
What It Looks Like: The Folder on the Desk
From the book · Risk #6 and Success #3 · A fictional example
The school job is finished, but Maria Delgado cannot close it. A folder of unsigned change orders sits on her desk. The general contractor’s project manager keeps saying they will “get to it.” Retainage is still being held. The credit line is still maxed out. Maria spends most mornings on the phone trying to figure out which bills can wait another week.
Later, Maria and her crew lead Lou write down a rule and underline it twice: no extra work starts until the change order is signed. Maria and Lou are fictional characters in the book. The rule is simple. Keeping it is the hard part.
The Fix
How to Write a Change Order in 6 Steps
Use the same six steps every time. The speed of the form matters more than the polish.
Stop and flag the change.
The moment the work differs from the contract, say so out loud. A customer request, a hidden condition, or a design change are all triggers. Tell the crew lead to pause the extra work until it is priced.
Describe the change in plain words.
Say what is being added or removed, and where. Attach photos, a sketch, or a drawing. A clear description heads off arguments later.
Price it like a bid.
Add direct costs, your share of overhead, and profit. Do not guess. Use the same steps in our guide to bidding a job, and the same cost codes as job costing.
Add the time.
Say how many days the change adds to the schedule, even if the answer is zero. Time is money, and unclaimed time disappears.
Get signatures before work starts.
Have the customer or owner sign, and the general contractor too if there is one. The AIA change order form has lines for the owner, the architect, and the contractor.
Log it, bill it, and track it.
Add it to a change order log, bill it on the next pay application, and review the log weekly. Approved extras should show up in your retainage tracking too.
Sample: A One-Page Change Order
| Line | What to write |
|---|---|
| Project and change order number | Smith kitchen remodel, change order 2 |
| Description of change | Add under-cabinet lighting on two runs, as shown in the attached sketch. Includes switch and wiring. |
| Price change | Add $1,850 |
| Time change | Add 1 working day |
| New contract total and completion date | $66,350 (from $64,500). Completion date moves from March 14 to March 15. |
| Signatures and date | Customer, contractor, and date. Work starts only after both signatures. |
A sample for illustration. Use your contract’s form if it has one.
“Happy to do that. It is outside the original scope, so I will send a one-page change order with the price and any added days. Once you sign it, we will schedule the work.” Say it every time, the same way, with a smile. It sounds routine because it is.
Know the Rules
Change Orders, Forms, and the Florida Lien Clock
Standard forms and state law shape what a change order needs. These notes show the picture.
Many contracts use standard forms. The AIA G701 is the change order. The AIA G714 is the construction change directive, which orders a change before price and time are agreed. ConsensusDocs publishes matching forms: CD 202 is its change order and CD 203 is its constructive change directive, according to the ConsensusDocs comparison matrix. Use the form your contract names.
| Florida rule | What it means for you |
|---|---|
| Extras and change orders are part of the contract (section 713.01) | The extra must be authorized by the owner to count. That is our reading of the statute, not a quote. |
| Notice to Owner within 45 days of starting (section 713.06) | Subs and suppliers without a direct owner contract must serve it on time. Late or missing notice is a complete defense to the lien. |
| 2023 changes (HB 331, effective Oct. 1, 2023) | The permit threshold for a Notice of Commencement rose from $2,500 to $5,000, and the minimum lien-transfer bond rose from $1,000 to $5,000. |
Chapter 713 quotes come from the 2021 compilation and a 2023 law firm summary. Confirm the current text with an attorney.
Change order and lien rules differ by state. Some states require written change orders for the contractor to be paid at all. Ask a construction attorney in your state before you rely on a deadline.
Dr. Paul’s Insight
A change order is not paperwork for the customer. It is a conversation about scope that you control. The contractors who get paid for extras do not argue about price after the work. They agree on price before it, on a form, in under five minutes. Make that your routine and the cash gap gets smaller too.
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Change Order Questions
What is a change order in construction?
What should a change order include?
Can I start work before the change order is signed?
How many change orders go unpaid?
What is a construction change directive?
Start with the book. Call when you want your change order process set up.
Keep Going
Related Construction Guides
Change orders connect to retainage, lien paperwork, bids, subs, and cash.
What Is Retainage in Construction?
How the holdback works, who can hold how much, and how to collect it faster.
The Mandatory Checklist
License, insurance, bonding, and lien rights, with Florida as the example.
How to Bid a Construction Job
The 8-step bid check, markup versus margin, and a walk-away number.
Managing Subcontractors
License and insurance checks, the agreement, and Florida pay rules.
Why Profitable Contractors Run Out of Cash
The 90-day cash calendar and seven fixes for the gap between payroll and payment.
How to Prioritize Work
Decide which change orders and fixes come first.
Sources
Where These Numbers and Rules Come From
Every figure on this page comes from a source below. Dollar examples labeled as examples are illustrations, not projections for your business.
- Clearstory and Dodge: The 2026 State of Change Orders, Subcontractor Report Vendor survey; 113 subcontractors.
- AIA Contract Documents: Summary of G701-2017 Change Order Undated.
- ConsensusDocs: Document Comparison Matrix (2020)
- Florida Statutes, chapter 713 (2021 compilation) 2021 text, not 2025.
- Bilzin Sumberg: Florida Enacts Changes to Construction Lien Law (June 2023) Law firm summary of HB 331.
- Top 5 Reasons Construction Companies Fail, by Dr. Paul Borosky Risk #6 and Success #3. Maria and Lou are fictional.
Dr. Paul Borosky, DBA, MBA
Business Consultant, Author & Educator | 14+ Years | 1,000+ Clients Served
Dr. Paul Borosky, DBA, MBA is a business consultant, author, and educator, and the founder of Quality Business Plan. He helps small business owners across the United States and Canada, including contractors and specialty trades, with business planning, financial modeling, fractional CFO services, and the everyday problems of businesses that depend too much on their owners. He is the creator of Dr. Paul’s Organize-Plan-Grow™ Strategy, author of numerous published books on Amazon including Top 5 Reasons Construction Companies Fail, and publisher of over 1,000 business-focused videos on YouTube.
This page is for general educational purposes only. It is not legal, financial, tax, accounting, insurance, or other professional advice. Construction laws, licensing rules, and tax rules vary by state and change over time. Dollar examples are illustrations, not projections for your business. Shiny Nail Remodeling, Square-Up Contractors, and the people in them are fictional. For decisions about your own business, consult a qualified professional.