A construction change order is the written document that changes a signed construction contract: it describes the change in the work and states the adjustment, if any, to the contract sum and to the contract time. On projects using AIA documents, owner, contractor and architect all sign it; on federal jobs, the contracting officer issues it. The process usually runs in four steps: the owner asks for a change or something on site forces one, you send a change order request with your price and schedule impact, the parties agree and sign the change order, and you log it and bill it on your next pay application. Price the change from the same estimate you used for the original bid, and give written notice before you start the extra work. Contract language decides the details, so read your notice and pricing clauses first.
This isn't legal advice. The definitions and clauses below come from AIA documentation and the Federal Acquisition Regulation, retrieved in November 2026. For the bigger picture of what an AI employee can draft in a contractor's office, see AI Construction Estimating: What It Can Do.
Construction change order, request, directive: three different papers
Search results for this topic mix up three documents. Keeping them apart saves arguments later.
According to the AIA, its G701 Change Order form "is for implementing changes in the Work agreed to by the Owner, Contractor, and Architect", and signing it "indicates agreement upon all the terms of the change, including any changes in the Contract Sum (or Guaranteed Maximum Price) and Contract Time". Changes authorized by a construction change directive aren't counted in a later change order "unless such changes were subsequently agreed to by the Contractor and recorded as a Change Order".
Federal contracts work differently. The FAR defines a change order as "a written order, signed by the contracting officer, directing the contractor to make a change that the Changes clause authorizes the contracting officer to order without the contractor's consent". The price adjustment follows afterwards.
What goes into a change order
The AIA instructions for G701 list what the form records. That list is a good checklist for any change order, AIA or not:
- Description of the change. A detailed description or a reference to exhibits, with "any drawings, specifications, documents or other supporting data to clarify the scope of the change".
- Original contract sum (or guaranteed maximum price).
- Net change by previous change orders.
- Contract sum before this change order.
- Increase or decrease from this change order.
- New contract sum.
- Change in contract time, in days, and the new date of substantial completion.
- Signatures of the parties.
Add two things the form doesn't force but your office will thank you for: a running change order number, and the source of the request, meaning who asked for what, when and where (site meeting, email, revised drawing with its revision number).
Change order template for construction
Copy this into your own template file next to your quote template, replace every bracket and strike what doesn't apply. It works as a change order request; once both sides sign, it's the change order.
[Your company, address, license no. if required, contact]
To: [Owner / general contractor, address]
Project: [Name, address]
Contract: dated [date], no. [number]
Change order no.: [CO-01]
Date: [date]
CHANGE ORDER [CO-01]: [short title]
Source of the change
On [date], [name, role] requested the following change
[in the site meeting / by email / with drawing no. ..., rev. ...]:
[one sentence].
Description
[What will be added, changed or removed. Affected items in the
schedule of values: [..], [..]. Attachments: [drawings, photos].]
PRICE
Item Description Qty Unit Unit price Amount
1 [added work] [ ] [ ] $[ ] $[ ]
2 [changed work,
replaces item [..]] [ ] [ ] $[ ] $[ ]
3 [deleted work] [ ] [ ] $[ ] -$[ ]
Overhead and profit [%] $[ ]
Total this change order $[ ]
Original contract sum $[ ]
Net change by previous change orders $[ ]
Contract sum prior to this change order $[ ]
This change order (increase / decrease) $[ ]
New contract sum $[ ]
TIME
Contract time will be [unchanged / increased / decreased]
by [number] days. New substantial completion date: [date].
VALIDITY AND APPROVAL
This proposal is valid until [date]. Work on this change
[will start after signed approval / starts on your written
direction of [date]].
Contractor: ____________________ Date: ________
Owner: ____________________ Date: ________
[Architect: ____________________ Date: ________]
Two notes. If your contract uses AIA documents, use the form your contract calls for; this template doesn't replace it. And the line about when work starts is a decision only you can make: start now on the owner's direction, or wait for the signature.
How to price a change order
Price the change the way you priced the job. Take the same labor rates, the same crew productivity, the same markup you used in the original estimate, and apply them to the new quantities. If an item already exists in your schedule of values, use its unit price unless the change alters the conditions it was priced under.
Here's an example with assumed numbers. An owner adds 400 square feet of a finish that isn't in the contract. Your estimate for similar work carries 0.05 labor hours per square foot at a labor rate of $65, materials at $1.80 per square foot and a 20 percent markup for overhead and profit. That gives (0.05 × 65 + 1.80) × 1.20 = $6.06 per square foot, or $2,424.00 for 400 square feet. The numbers are an example; what counts is that every one of them comes from your estimate and you can show it.
If you deleted work, credit it at the same rates. Owners notice when additions are priced at today's rates and credits at bid-day rates.
Notice and deadlines
Most disputes over change orders aren't about price but about timing. Your contract sets the notice period, and you can lose money by missing it.
Federal construction contracts are a clear example. Under FAR 52.243-4, an order that isn't labeled a change order but still causes a change counts as one only if the contractor gives written notice "stating (1) The date, circumstances, and source of the order; and (2) That the Contractor regards the order as a change order." Costs incurred "more than 20 days before the Contractor gives written notice" aren't adjusted, except for defective specifications. And the contractor "must assert its right to an adjustment under this clause within 30 days" after receiving a written change order or giving that notice; the FAR lets agencies vary that 30-day period. Private contracts and AIA agreements have their own clauses. Whatever yours says, write the deadline into your change order log.
Change order log: one list per project
A change order log shows at a glance what was requested, priced, approved and billed. It's a spreadsheet, not a software purchase.
Three rules keep it honest: every request gets a number the day it comes in, including verbal ones on site; no extra work starts without written notice; and before every pay application you compare the log against the invoice. Open change order requests need follow-up like any quote; how that sounds is in How to Follow Up on a Quote by Email. How invoicing tools handle change orders, retainage and progress billing is in Construction Invoicing Software Compared. How a pay application itself is built is in Progress Billing Explained, With a Template.
What an AI employee drafts for a change order
For proposals I have Anton. He runs in my own business: he turns an initial conversation into an offer PDF and, once a client says yes, creates the contact, offer and invoice as drafts in my accounting tool. My offers are coaching offers, not construction bids. For change orders, you describe the workflow to him once: original contract plus the request in, a draft with a note on what changes against the contract out. Three of his rules fit this exactly:
- Without a price source, he sets no price. For a change order that means unit prices only from your estimate or your line-item list. If a rate is missing, he asks.
- Two prices, two sources. If he finds two different prices for the same item in the materials, he lists both with their source and asks, instead of averaging.
- He recalculates and never sends on his own. He checks net, tax and total himself, inspects the PDF page by page, and nothing leaves the system without your click.
What stays with you: whether the change is owed at all, the quantities from your takeoff, the rates in your estimate, the schedule impact and the decision to start before approval. How you put that into practice in your business is something we can look at together. What AI does when drafting quotes, and where it stops, is in Writing Quotes and Invoices with AI; which roles carry over to a trades business is in AI Agents for Tradespeople: Roles, Not Tools.
Frequently asked questions
What is a change order in construction?
A written amendment to the construction contract that describes a change in the work and the resulting adjustment, if any, to the contract sum and the contract time. On AIA projects it's agreed and signed by owner, contractor and architect; on federal projects the contracting officer issues it.
What is the difference between a change order and a change order request?
The request is your priced proposal; nothing is agreed yet. The change order is the signed agreement. Until it's signed, track the request as pending in your log.
How do you price a change order?
From your original estimate: same labor rates, productivity and markup, new quantities. Credit deleted work at the same rates and show the math in an attachment.
Can I do the extra work before the change order is signed?
That depends on your contract and on whether the owner has directed you in writing. Give written notice before you start, keep the request in your log and check the deadline in your contract.
How to keep going
Take your current project and set up the change order log, with every request from the last few weeks, including verbal ones. Send written notice for anything not yet covered, and use the template above for the first open request. If you want to see which office work in your business an AI employee can prepare, book a strategy session: in 20 minutes we look at the one workflow in your business that depends on you the most. The Bottleneck Check shows the same in about five minutes on your own. More industries are on AI by Industry.
