Construction Change Order
Written change order modifying an existing construction contract - scope, cost, time impact.
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CHANGE ORDER CO-003 ═══════════════════════════════════════════════════════════════════════ 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 ═══════════════════════════════════════════════════════════════════════ CHANGE REQUESTED BY ► Owner ═══════════════════════════════════════════════════════════════════════ 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. ═══════════════════════════════════════════════════════════════════════ 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 ═══════════════════════════════════════════════════════════════════════ 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. ═══════════════════════════════════════════════════════════════════════ 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.