Whatever the reason, change orders happen—and if you don’t handle them right, you could end up doing extra work without extra pay.
Many contractors lose money because they agree to changes informally. Maybe it’s to keep the job moving or avoid back-and-forth with the client. But without proper documentation, you’re putting your cash flow at risk.
So how do you make sure every change is accounted for and billed correctly?
Keep It Simple, But Get It in Writing
When a change happens, stop and assess whether it affects cost or schedule. If it does, don’t move forward on a handshake. Put it in writing first.
A simple change order form—also called a work change proposal—can help. This doesn’t need to be complicated. A single-page document or even a well-written email can do the job, as long as it includes:
- A clear description of the work changing
- Any added cost (labor, materials, etc.)
- How the schedule is affected (if at all)
- A spot for approval—preferably signed
Once it’s approved, you have a record. That’s your green light to move forward—and your protection when it’s time to bill.
Don’t Undersell the Change
When pricing a change, be honest about what it really costs. That includes materials, extra labor, equipment, and even your time for planning and coordination. A small change can turn into a big loss if you don’t account for everything it takes to get it done.
Include It Clearly on the Invoice
Once the work is approved and completed, add it to your next invoice as a separate line item. Reference the approved change form so the client knows exactly what it’s for. This keeps billing clean and avoids confusion—or worse, pushback.
It also shows the client you’re organized and professional. And that goes a long way in getting paid on time.
Stay Ahead with Communication
The best way to avoid billing issues is to be transparent throughout the project. Let clients know when something is changing, give them the cost before doing the work, and follow up quickly with documentation. The longer you wait, the harder it gets to justify the extra charge.
Final Thoughts
Change orders don’t have to be a headache. With a clear process and good communication, you can protect your profits and get paid for the work you actually do. Remember: no documentation, no payment. Don’t work for free.