Construction Change Order

Written change order modifying an existing construction contract - scope, cost, time impact.

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CHANGE ORDER CO-003

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PROJECT:         482 Elm Street, Apt 3B, Portland, OR 97214
OWNER:           Jordan Alex Taylor
CONTRACTOR:      Pacific Home Renovations LLC

ORIGINAL CONTRACT: PHR-2026-04481, dated 2026-01-15

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CHANGE REQUESTED BY

   ► Owner

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DESCRIPTION OF CHANGE

Owner has requested upgrade from standard cabinet hardware to brass cabinet pulls (Belle Foret model BF-PULL-225, brass finish).
Quantity: 28 pulls (matches cabinet door + drawer count).
Replacement of currently-specified standard hardware.
No other scope changes.

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PRICE AND SCHEDULE IMPACT

  Price impact:                     $1,280.00 (addition to contract)
  Time impact:                      0 days (hardware available; no schedule impact)

  NEW CONTRACT TOTAL:               $39,780.00

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JUSTIFICATION

Owner saw the brass pulls in showroom and prefers the higher-end finish. Cost difference is modest; Owner accepts the additional cost. No structural or other work-impact. Cabinet doors and drawers are not yet drilled; substitution is straightforward.

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ACCEPTANCE

The parties acknowledge:
  - This change order modifies the original contract; all other contract terms remain in effect.
  - The change is authorised before the work proceeds.
  - The Owner agrees to pay the additional amount per the original payment schedule's framework.
  - Time and cost impact are acknowledged; no further claim for impact will be made.


_______________________________            Date: ____________________
Jordan Alex Taylor (Owner)


_______________________________            Date: ____________________
Pacific Home Renovations LLC (Contractor)

About this template

Change orders are the most-disputed element of construction contracts. The contract typically requires written change orders before work proceeds; verbal "we agreed to add this" arrangements lead to fee disputes at end-of-project. Best practice: every change order is signed by both parties before work, with specific cost (positive or negative), time impact, and clear scope description. Common change-order categories: (1) Owner-requested upgrades (premium materials, design changes); (2) Contractor-proposed alternatives (often value-engineering); (3) Code-required changes (inspector requires modifications); (4) Unforeseen conditions (rotted subfloor under tile, asbestos in walls, etc.). Each requires different documentation. State law (California, Oregon, others) typically prohibits contractors from charging for unauthorised work; without a signed change order, the contractor cannot enforce additional fees and the owner is not obligated to pay. The most-litigated category is "unforeseen conditions" - contractors discovering issues mid-job and demanding additional payment. Best practice: contractor stops work, photographs the condition, prepares written change order with cost estimate, owner approves before work proceeds. Continuing work without authorisation puts the contractor at risk of non-payment. The change order should reference the original contract number, specify all impacts (price, time, scope), and be signed by both parties. Keep all change orders together with the original contract; cumulative-change tracking is essential for end-of-project billing and dispute resolution.

When to use it

  • Owner-requested scope upgrades.
  • Material substitutions (different brand, finish, model).
  • Code-required modifications discovered during inspection.
  • Unforeseen-condition discoveries.
  • Schedule extensions due to scope changes.

What to include

  • Project, owner, contractor identification.
  • Reference to original contract.
  • Change-order number for tracking.
  • Description of change (specific scope).
  • Price impact (positive or negative).
  • Time impact (calendar days).
  • New contract total.
  • Justification.
  • Both parties' signatures BEFORE work proceeds.

Frequently asked

Generally no. Most contracts require written change orders; state law often prohibits charging for unauthorised work. Without a signed change order, the contractor cannot enforce additional fees. Owners should refuse to pay for any work claimed as "extras" without a written change order signed in advance.
⚠ Legal disclaimer. Change orders must be in writing per most construction contracts. State law (California, Oregon, Texas, others) typically prohibits contractors from charging for unauthorised work. For complex changes, especially those involving architects or large dollar amounts, follow the contract's specific change-order procedures.

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