A Change Order is a written document that details modifications to the original scope of work in a construction project. It is a formal request made by the client or project owner to the contractor, instructing them to make specific changes that deviate from the original contract or plans.
Change orders occur for various reasons, including:
Design changes
Material substitutions
Scope adjustments
Schedule changes
Code compliance updates
Unforeseen site conditions
When a change order is requested, the contractor evaluates the impact on schedule, cost, and resources, providing an analysis of the time and expenses required. Once the client agrees to the modifications, both parties sign the change order, making it an official amendment to the original contract.
Change orders ensure clear communication and proper documentation throughout the construction process, helping prevent disputes and keeping all parties informed of project modifications.
How to Create a Project Change Order
1. Access the Change Orders Tab
Navigate to the Project Page → Click Change Orders (left side of the page).
Review Change Order KPIs and any overdue Change Orders listed.
📌 Note:
The number of unapproved Change Orders and their total cost is listed in the Documents section of the Project Dashboard.
2. Generate a Change Order
Click “+ GENERATE CHANGE ORDER” (right side of the page).
General Information
Fill in the following required details:
Date – Defaults to today's date.
Status – Defaults to Draft.
Send To – Select a customer contact (pulled from the Billing Customer Page).
Return To – Select an internal contact (pulled from the Personnel list).
Subject – Enter a Change Order subject.
Scope of Work – Provide a description of the requested project changes.
Days Valid – Number of days the Change Order is valid before price adjustments.
Schedule Extension – Additional time required for the project due to the change.
GC Purchase Order Number (Optional) – Reference number given by the General Contractor.
3. Define Change Order Scope & Pricing
⚠️ At least one of the following six sections must be filled out, otherwise, the Change Order will be $0.
Labor
Click the arrow to expand the Labor section.
Click "+ Add Labor".
Enter details:
Description – Example: Labor for Ductwork, Grilles, Lining, etc.
Hours – Estimated labor hours.
Cost – Internal labor cost.
Unit Price – Price billed to the customer.
Phase, Department, Cost Code – Ensure correct selections for accurate budgeting.
Overhead & Profit Markup – Define Overhead % and Profit %.
Taxable? – Check the box if the labor is taxable.
📌 Pro Tip: Add separate labor lines for different labor rates (e.g., Journeyman vs. Apprentice).
Materials
Expand the Materials section → Click "Add Material".
Enter the required material descriptions and pricing.
📌 Note: Materials are not automatically pulled from the Item List.
Equipment, Subcontractor, Other, Overhead
Follow the same process as Labor and Materials for these sections.
Each section contributes to the overall Change Order pricing.
At the bottom of the page, verify the totals:
✅ Cost Total
✅ Revenue Total
✅ Margin Percentage
Click “SAVE” (upper right corner) to save the Change Order as a Draft.
4. Reviewing & Managing the Change Order
Click on the Change Order number hyperlink to open the Change Order.
Add supporting images or documents under the Attachments section.
Choose a PDF preset to adjust the display:
All Details
Section Subtotals
Grand Totals Only
Click “Preview” to view, print, or download the Change Order.
5. Sending a Change Order for Approval
How to Email a Change Order
Click “EMAIL”.
Select a contact in the SEND TO field (or manually enter an email).
Add CC/BCC emails if necessary.
Customize the subject and email body (if needed).
Click “SEND”.
📌 The Communication History will update once the Change Order has been emailed.
6. Approving a Change Order
Once the client reviews and approves the Change Order:
Open the Change Order.
Review the Communication History.
Click “APPROVE” (upper right corner).
Approval Options:
✔ Create New Change Order – Generates a new CO for tracking.
✔ Add to Existing Change Order – Combines it with an existing CO.
✔ Create Internal Change Order – Tracks internal changes for documentation.
Click “SAVE” to finalize. The status updates to Approved.
📌 Editing an approved Change Order resets it to Draft and requires re-approval.
7. Linking Change Orders to Project Files
Click “ADD TO FILES” to store the approved Change Order in the Project Files, making it accessible to mobile users.
📌 Once a Change Order is approved, it will automatically be included in the next Pay Application.
FAQs
1. Why isn’t my Change Order appearing in the Pay Application?
Ensure the CO is approved and falls within the Pay Application date range.
2. Can multiple Change Order Requests (CORs) be combined into one Change Order?
Yes – You can approve multiple CORs into a single Change Order.
3. How can I edit a Change Order that’s already included in a Pay App?
Change Orders cannot be edited if they are already included in a submitted Pay App.
To make edits, follow these steps:
Void the Pay App that includes the Change Order
Revert the Change Order back to Draft status
Make your changes to the Change Order
Once updated, you can proceed to recreate the Pay App as needed.
4. Is it possible to have 1 GC CO number for 2 different Change orders?
Yes, if upon approval you select “Add to Existing”
5. Where does the company name pulled from in the To and From sections of a Change Order?
The company name from the COR PDF To field, pulls from the Billed to project owner
The company name from the COR PDF To field, pulls from the Billed to project owner:
6. What are the file size limits across projects?
200MB for images/media
GB for other files
7. Can I add a signature line to the Change Order PDF sent to customers?
No. At this time, the Change Order PDF does not include a signature line and cannot be customized to add one. If a signed change order is required, you can download the PDF and collect signatures using your preferred external signing tool or internal process.
You can also reach out to your CSM to submit product enhancement to add this as feature in the future.