Contractor Resources
Contractor Change Order Template (Free)
Scope changes happen on every job. This free template documents changes properly so you protect your margins and avoid disputes. Copy/paste the wording below or see how BuildFolio automates the entire process.
TL;DR – Quick Summary
A change order is a written document that modifies your original contract when scope changes mid-job. Always get signed approval before starting changed work. Include: job reference, detailed scope description, itemized costs, schedule impact, and dual signatures. The template below is free to copy. BuildFolio users can automate this entire workflow in Job Hub.
Why Change Orders Matter
Every experienced contractor knows the scene: you’re mid-job when the homeowner asks “while you’re here, can you also…” or you open a wall and find something unexpected. Without a written change order, these moments become profit killers.
Change orders protect you in three ways:
- Margin protection: Document additional costs before doing additional work
- Dispute prevention: Written approval eliminates “I never agreed to that” arguments
- Lien rights: Many states require documented scope changes to preserve mechanics’ lien rights
The Golden Rule
Never start changed work without a signed change order. Even on small items. Especially on small items – they add up fast.
Free Change Order Template
Copy this template into your own document. Fill in the bracketed fields for each change order.
What Every Change Order Must Include
A legally solid change order needs five elements:
- Job identification: Original contract date, property address, and original contract amount. This links the change order to a specific job.
- Clear scope description: Exactly what work is being added, removed, or modified. Include material specs, quantities, and boundaries of work.
- Itemized pricing: Break down materials, labor, equipment, and overhead. Show your math so customers understand the cost.
- Schedule impact: How many days (if any) this adds to the project. Some changes can be absorbed; others extend the timeline.
- Dual signatures: Both contractor and customer must sign before changed work begins. No exceptions.
Example Wording for Common Scenarios
Scenario 1: Material Upgrade Request
Example: Roofing Shingle Upgrade
Reason: Customer requested upgrade from 3-tab shingles to architectural shingles after seeing neighbor’s roof.
Scope: Replace 28 squares of 3-tab asphalt shingles (per original contract) with GAF Timberline HDZ architectural shingles in Charcoal. All underlayment, flashing, and installation specs remain per original contract.
Cost Impact: Materials +$1,680, Labor +$420. Total: +$2,100
Scenario 2: Hidden Condition Discovery
Example: Rotten Decking Found
Reason: Upon removal of existing roofing, approximately 3 sheets (96 sq ft) of roof decking discovered to be water-damaged and structurally compromised. Replacement required before new roofing installation.
Scope: Remove and dispose of damaged 7/16″ OSB decking. Install new 7/16″ OSB to match existing. Re-install ice & water shield at affected area.
Cost Impact: Materials $245, Labor $380, Disposal $75. Total: +$700
Scenario 3: Scope Addition
Example: Additional HVAC Zone
Reason: Customer requested addition of mini-split unit for home office (not included in original scope).
Scope: Install Mitsubishi 12,000 BTU wall-mounted mini-split in home office. Includes indoor head, outdoor condenser, line set, electrical connection to existing panel, and commissioning.
Cost Impact: Equipment $1,850, Materials $320, Labor $680, Permit $85. Total: +$2,935
Schedule Impact: +2 days
How BuildFolio Automates Change Orders
The template above works, but it’s manual. Every change order means paperwork, calculations, and chasing signatures. BuildFolio’s Job Hub connects change orders to your entire workflow:
Create Change Orders Inside Job Hub
Add a change order directly to any job. Materials and labor pull from your price book – no manual calculations. Costs update the job total automatically.
Customer Approves on Their Phone
Send the change order via text or email. Customer reviews, approves with e-signature, and you get instant notification. No printing, scanning, or chasing paper.
Costs Flow Through to Profit Intelligence
BuildFolio tracks the margin impact of every change order. See if scope changes are helping or hurting your profitability on each job.
Final Invoice Includes Everything
When the job is done, your invoice already reflects all approved change orders. One-click invoicing with no manual reconciliation.
Why BuildFolio vs. Other Software
vs Jobber: Jobber tracks jobs. BuildFolio tracks profit on every change order – know if scope changes help or hurt your margins. vs ServiceTitan: Same automation at 1/10th the cost ($39/mo vs $500+). vs Housecall Pro: Change orders connect to AI-powered quotes, not just basic CRM.
Template vs. Software: Quick Comparison
| Capability | Template (Manual) | BuildFolio |
|---|---|---|
| Create change order | Copy/paste, fill fields | Click “Add Change Order” – prices auto-populate |
| Customer approval | Print, sign, scan | E-signature via text/email |
| Cost tracking | Manual spreadsheet | Automatic – tied to job totals |
| Final invoicing | Manually add change orders | One-click – all changes included |
| Profit visibility | Calculate at tax time | Real-time margin tracking |
Frequently Asked Questions
Is this change order template really free?
Yes, completely free. Copy and paste it into your own documents or download as PDF. No signup required to use the template. If you want to automate change orders and connect them to your quotes and invoices, BuildFolio offers a 14-day free trial.
Can I use this template for insurance restoration work?
Yes, this template works for insurance jobs. For restoration work, you may want to add a field referencing the original claim number and scope of loss document. Some adjusters prefer Xactimate-format change orders, but this template covers the essential documentation most carriers accept.
Should I have a lawyer review my change order template?
For high-value projects or if you’ve had disputes in the past, legal review is wise. The template includes standard protective language, but state laws vary. A construction attorney can customize it to your specific state’s lien laws and contract requirements.
How does BuildFolio automate change orders?
In BuildFolio, change orders connect directly to your original quote in Job Hub. When you add a change order, costs update automatically, the customer can approve via e-signature on their phone, and the final invoice reflects all changes. No separate paperwork or manual calculations needed.
What’s the difference between a change order and an addendum?
A change order modifies scope, price, or timeline of an existing contract – it’s a formal amendment. An addendum typically adds clarifying terms or conditions without changing the core scope. Use change orders for any work that affects price or schedule; use addendums for administrative updates like updated contact info or payment method changes.
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