Why Change Orders Exist
Even well-planned projects evolve. Common drivers include:
- Owner-driven changes to scope, selections, or finish level
- Unforeseen conditions (hidden damage, site constraints)
- Clarifications from RFIs or revised drawings/specs
- Code/inspection requirements and material substitutions
What a Good Change Order Includes
Specifics speed approval and billing.
- Clear description of the change and location
- References: drawing/RFI/spec numbers; photos if relevant
- Pricing: labor, materials, equipment, subs, markups
- Schedule impact (days) and sequencing notes
- Contract amount before/after; updated SOV lines
- Tax/retainage handling and signatures (e-sign okay if allowed)
Pricing Methods You Can Use
Match pricing to the situation and your contract terms.
- Lump Sum: fixed price for the defined change (best when scope is clear)
- Time & Materials (T&M): actual hours × rates + materials with agreed markups; attach tickets/photos
- Unit Price: pre-agreed rate per unit (e.g., linear foot, square)
Standard Process (Field → Office → Approval)
Capture the change fast, then formalize it before work proceeds.
- Field records an Extra Work Authorization (EWA) with notes/photos and customer signature
- Office prices the change and issues a written CO
- Approve before work whenever possible (especially for lump sum)
- Update budget and SOV; track separately for billing and WIP
How COs Affect AIA/Progress Billing
Keep your pay apps audit-ready by aligning COs to the SOV.
- Add new SOV line(s) or adjust existing ones tied to the CO
- Reference CO numbers on the G703 Continuation Sheet
- Apply retainage consistently to CO lines
- Show prior-to-date and current billings cleanly on G702
Common Pitfalls (and Fixes)
A few habits cause most CO disputes—avoid them early.
- Starting work without written authorization → capture an EWA the same day
- Vague scope → reference drawings/specs and attach photos
- No schedule note → list added days or state “no time impact”
- Misaligned SOV → add/adjust lines before the next pay app
How Werx Streamlines Change Orders
Werx connects field capture, pricing, and billing so COs move fast.
- Create EWAs with on-the-spot signatures in the Werx Field App
- Convert EWAs to COs, update SOV, and track retainage
- Bill via AIA/progress pay apps or T&M invoices
- Sync invoices and payments with QuickBooks Online
FAQs About Change Orders
What’s the difference between an EWA and a Change Order?
An Extra Work Authorization is a quick field agreement to proceed and capture proof; the Change Order is the formal contract modification with final scope, price, and time impact.
Can I bill a CO before it’s signed?
It’s risky. If work must proceed, use a signed EWA and bill as T&M with full backup—then convert to a formal CO ASAP.
How do I handle overhead & profit on COs?
Follow your contract’s OH&P terms. Price direct labor, materials, equipment, and subs, then apply the agreed markup. List it clearly on the CO.
TL;DR Recap
- A change order formally adjusts scope, price, and/or time
- Capture an EWA in the field; issue a written CO before work
- Align COs to your SOV and reference them on pay apps
- Werx ties EWAs, COs, SOVs, billing, and QuickBooks together
