How to handle change orders and extra work
Published
Almost every job changes after it starts. The customer adds a socket, a wall turns out to be rotten, a delivery arrives different from the order. A change order is the written agreement on the change and its price, made before the extra work begins.
Why changes go wrong
Extra work is usually agreed in passing, on site, with a nod. At the end of the job the customer remembers a smaller change than you do, or none at all. A short written note turns a disagreement about memory into a check against a document.
A simple routine for every change
- Stop and describe the change in plain words: what, where and why
- Price the extra work on separate lines for labor, materials and other costs
- Say how the change affects the finish date, if at all
- Get the customer's written approval before you start; a short message or reply is better than nothing
- Keep the approval with the job records
- Invoice the change so it is easy to see next to the original price
Keep it separate from the original price
Do not fold the extra cost into the original estimate. Show the original price, the change and the new total, so the customer can see exactly what moved. It also lets you tell later how much of a job's profit came from the original scope and how much from changes.
Unforeseen conditions
Some changes are not the customer's idea: hidden damage, a wall that is not where the plans show it, or a material that is no longer available. Photograph the problem, explain it in simple terms and offer options with prices. Customers accept an unexpected cost much more readily when they can see the cause.
Write it down the same day
Note the change, who agreed to it and when in that day's site report. A dated record written at the time carries far more weight than a recollection months later.
Change orders in SiteReporta
SiteReporta does not have a separate change-order document. A practical way to work is to build a new estimate for the extra work, with its own number, date and line items, and send it as a PDF for approval. Once it is accepted you can convert it to an invoice with identical totals, as described in estimate vs invoice.
General guidance, not legal, tax or accounting advice. Rules differ by country and trade.