Change Order Form Template: A Legal Safeguard for General Contractors

In the construction industry, “scope creep” is the silent killer of profitability. A client asks for a slightly nicer tile, then moves a wall, then adds recessed lighting. You agree verbally to keep the project moving, but three months later, the client disputes the final bill because “they didn’t realize it would cost that much.”

The only defense against this scenario is a rigorous Change Order (CO) process.

If you find that paper forms are slowing you down, check out our guide to Digital Change Order Management.

If it isn’t in writing, it didn’t happen. To help you protect your margin, we have developed a legally robust Change Order Form Template, available in Word and PDF formats.

[Download the Change Order Template (Word/PDF)]

Why You Need a Standardized Change Order Form

A Change Order is a legal amendment to the original construction contract. It does three things:

Defines the new scope: Explicitly states what is changing.
Adjusts the price: Adds (or deducts) money from the contract sum.
Adjusts the timeline: Adds days to the schedule if necessary.

Without a signed CO, you are effectively volunteering to do the extra work for free.

How to Fill Out This Template (Section by Section)

We have designed this form to be “client-ready”—professional, clear, and intimidating enough to show you mean business, but polite enough to maintain the relationship.

1. The Reference Data

CO Number: Always number them sequentially (CO #01, CO #02). This prevents “lost” documents.
Original Contract Date: References the master agreement this CO is modifying.
Project ID: Matches your internal job number.

2. The Scope Description (The “Why”)

This is the most critical section. Do not just write “Added Tile.” Be specific:

Bad: “Bathroom changes.”
Good: “Supply and install 150 sq ft of updated Carrara marble tile in Master Bath, replacing originally specified ceramic tile. Includes additional substrate preparation required for natural stone.”

3. The Financial Breakdown

Direct Costs: The actual material and labor cost.
Overhead & Profit (O&P): Never forget to add your markup percentage to the change. If your standard margin is 20%, you must charge 20% on the change order too.
New Contract Sum: The template automatically calculates: (Previous Contract Total) + (This Change) = (New Contract Total). This forces the client to see the cumulative effect of their decisions.

4. Schedule Impact

There is a field to indicate if this change will delay the project. Even if you enter “0 Days,” checking this box protects you from liquidated damages later.

Frequently Asked Questions About Change Orders

When should I issue a Change Order? Ideally, before the work is performed. In fast-paced residential projects, this isn’t always possible. If you must proceed verbally, follow up with the written CO within 24 hours.

What if the client refuses to sign? Stop the work related to that specific change. If you continue without a signature, you are accepting the risk. Reference your original contract terms regarding “Changes in the Work.”

Can a Change Order be negative (a credit)? Yes. If a client decides to remove a fireplace to save money, issue a deductive CO. This lowers the contract price but creates a paper trail showing why the scope was reduced.

The Administrative Cost of Manual Change Orders

While this Word template provides legal protection, managing COs manually is a significant administrative burden.

The “Signature Chase”

Sending a Word doc or PDF via email requires the client to print it, sign it, scan it, and email it back. This friction causes delays. Clients often “forget” to sign until the work is already done, at which point you lose your leverage.

Budget Disconnect

A Word document is disconnected from your master budget spreadsheet. You might get the CO signed, but if you forget to manually update your Excel budget tracker, you might mistakenly bill the client for the old total at the end of the month.

Version Control Chaos

“Final_CO_03_Revised_v2.docx.” When you are negotiating a price change, you might go through four versions of the document. Ensuring the field team has the correct version (so they don’t install the wrong item) is a constant struggle.

Streamline Scope Changes with Bid Bench

Bid Bench transforms the Change Order process from a paperwork headache into a seamless digital workflow.

One-Click Creation: Convert a sub’s quote directly into a Client Change Order with a single click.
E-Signatures: Send the CO directly to the client’s phone. They can approve and sign digitally in seconds—no printing required.
Automatic Budget Updates: Once the client signs, Bid Bench automatically updates your Master Budget and your Invoicing Schedule. No data entry required.

Get paid for every extra.
[Start your 30-day free trial of Bid Bench today. No credit card required.]