Change Orders 101

TLDR

Change orders are unavoidable in construction, but they do not have to hurt your profitability. Clear quotes, fast communication, written documentation, and proper tracking are the keys to managing change orders successfully. With the right systems in place, contractors can protect margins, avoid disputes, and keep projects moving forward.

Understanding change orders in real construction projects

In a perfect world, the job we do would match the one we quoted exactly. Every dimension would line up perfectly, every assumption would be correct, and no one would ever change their mind.

Unfortunately, that is not how construction works. Most projects change once work begins. This is true whether you are estimating from site visits, plans, spreadsheets, or construction estimating software, and no matter what trade or specialty you work in. While change orders do add administrative work, they do not have to be stressful or unprofitable. Knowing how to manage them correctly makes all the difference.

Always provide detailed quotes

If your quotes are vague, approving change orders becomes much harder. Customers need to clearly see what is included, what is excluded, and where assumptions have been made.

Detailed, line item quotes reduce misunderstandings, which are one of the most common reasons contractors lose money. While building detailed quotes can take time, especially without the right estimating software, that effort pays off many times over once changes arise.

Timing matters more than you think

On commercial projects, contracts often specify strict deadlines for notifying clients about changes and submitting pricing. Residential projects may not be as formal, but the same principle applies.

The moment you identify a change, notify your client. Same day communication gives clients time to understand the impact and prepares them for pricing decisions. Delays in communication almost always lead to frustration and disputes.

Put everything in writing

Verbal agreements are risky. Any significant change to scope, schedule, or price should always be documented in writing.

This does not need to be complicated. A follow up email summarizing the change, its impact, and the cost is often enough. Always request confirmation and keep a copy for your records. Written documentation protects both you and your client.

Track every change order quote

If your estimating software includes change order tracking, use it. If not, you need a reliable system of your own.

Many contractors use a per project numbering system, tracking approved, pending, and rejected change orders separately. This makes final billing far easier and ensures that no completed work goes unpaid.

Match the level of detail to the client

Commercial clients and general contractors usually understand construction terminology and processes. Homeowners often do not.

When working with residential clients, provide more explanation. Photos, sketches, and clear descriptions help them understand what is changing and why. The clearer your explanation, the faster approvals tend to happen.

Separate wants from needs

Some change orders are optional. Others are essential.

Client driven changes like upgrades or design tweaks can usually wait. Required changes that affect safety, compliance, or structural integrity cannot. Make sure clients understand when work must stop until a change is approved and how delays affect the project timeline.

Take your time when pricing changes

Even when time feels tight, do not rush a change order quote. Missing costs or underpricing change orders is one of the fastest ways to lose profit on a job.

Well set up estimating software can speed this up, but even manual estimates deserve careful review. Once a quote is sent, changing it is difficult and often uncomfortable.

Remember omissions and reductions

Change orders are not only about additions. Omissions and reductions should also be documented and approved in writing.

If something was included in the original quote and later removed without written confirmation, you may still be expected to deliver it. Clear documentation avoids confusion at project closeout.

A necessary inconvenience that protects profit

Managing change orders may feel like an administrative burden, especially when juggling crews, suppliers, and multiple sites. However, many projects make or lose money after the initial quote is signed.

Strong change order management protects margins, recovers missed costs, and keeps expectations aligned throughout the project.

How Bolster simplifies change orders

Bolster was built to make change orders easier for contractors who do not have time for spreadsheets, binders, and endless email threads.

With Bolster, you can add, edit, or remove line items on a quote even after it has been accepted. Clients are automatically notified, and the original quote remains unchanged until they approve each change. Billing updates in real time, so you always know what has been approved and what has not.

Instead of chasing signatures and managing paperwork, you can handle change orders directly inside your estimating and project management workflow. It is faster, clearer, and far easier to stay organized.

If change orders are costing you time, profit, or peace of mind, it may be time to manage them digitally and give yourself more time to focus on the work that matters most.