The General Contractor’s Guide to Digital Change Order Management

The “Change Order” (CO) is the most friction-heavy mechanism in construction.

Technically, a CO is a formal amendment to the original contract. Practically, however, it usually happens in the chaos of the job site.

• Client: “Can we move this wall over two feet?”
• GC: “Sure, but it will cost extra for the framing and electric.”
• Client: “Fine, just do it.”

Three months later, when the invoice arrives, the client has “selective amnesia.” They refuse to pay, arguing that they thought it was a minor tweak, not a $2,500 charge.

This scenario plays out daily across the industry. The solution is not better memory; it is Digital Change Order Management.

If you aren’t ready for a full digital platform, you can start by downloading our Change Order Form Template.

The Legal “Danger Zone” of Verbal Changes

Most construction contracts contain a clause stating: “No changes to the Work shall be made without a written Change Order signed by both Owner and Contractor.”

If you perform work based on a text message or a handshake, you are technically volunteering. In a court of law, without a signed CO, the “Four Corners” doctrine often applies—meaning only what is written in the contract exists.

The problem isn’t that contractors want to work for free; it’s that the administrative burden of creating a paper CO is too high in the heat of the moment. You don’t want to stop the framing crew to drive back to the office, type up a Word doc, print it, and drive it to the client for a signature. So, you take the risk.

The Digital Workflow: Speed = Security

Digital management software removes the friction that prevents GCs from documenting changes.

1. The “Field-First” Creation

Modern tools allow you to draft a CO from your phone.

• Scenario: You are standing in the living room with the client.
• Action: You open the app, select “Create Change Order,” type “Move Wall,” and enter an estimated price of $2,500.
• Result: The document exists instantly. You haven’t left the room.

2. The Electronic Signature (E-Sign)

This is the game changer. You don’t need a printer.

• Action: You hand the iPad to the client, or email them a link instantly.
• Result: They sign with their finger.
• Legal Status: Under the ESIGN Act (2000), this digital signature is just as legally binding as a “wet ink” signature. You now have an enforceable contract amendment before the first stud is moved.

3. Immediate Budget Impact

In a paper world, a signed CO might sit in a truck dashboard for weeks. In a digital world, the moment that E-Sign hits, the Master Budget updates automatically.

• The “Contract Sum” increases by $2,500.
• The “Projected Profit” adjusts.
• The “Invoicing Schedule” adds the new line item.

Managing the “Pending” Purgatory

A major benefit of digital management is tracking Pending Change Orders (PCOs).

Often, a client asks for a price but doesn’t approve it yet. If you have 10 of these PCOs floating around, your financial forecast is fuzzy.

• Digital Dashboard: You can see a list of all PCOs. You can filter by “Awaiting Client Approval.”
• The Nudge: With one click, you can re-send the notification to the client: “Hey, we can’t schedule the electrician until this CO is approved.”

This puts the ball firmly in the client’s court and documents the reason for any schedule delays.

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The “Audit Trail” Defense

Disputes often happen months after the work is done.

• Client: “I never approved that tile upgrade.”
• You: Open Bid Bench. Pull up CO #04.
• The Data: “Actually, you viewed the document on Feb 12th at 4:30 PM, and signed it from IP address [192.168.x.x]. Here is the PDF with your signature.”

That level of data resolution ends disputes instantly.

Upgrade Your Defense with Bid Bench

Bid Bench integrates Change Order management directly into your project workflow.

• One-Click Conversion: Turn a Subcontractor’s quote directly into a Client Change Order. If the plumber charges you $500, Bid Bench lets you add your 20% markup and generate the Client CO for $600 instantly.
• Mobile Approvals: Clients can approve changes from their smartphone without logging in.
• WIP Reporting: Your Work-In-Progress reports automatically reflect approved changes, keeping your banking relationships healthy.

Don’t let scope creep kill your profit.
[Start your 30-day free trial of Bid Bench today. No credit card required.]