Contracts
Change Order
A written agreement between the owner and contractor that modifies the contract scope, price, or schedule after the original contract is executed.
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In the Field
Never perform out-of-scope work without a signed change order or at minimum a written directive. Verbal approvals are frequently disputed at payment time. Pricing change orders promptly — waiting until the end of a project to compile change order costs is a losing position.
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Rule of Thumb
Change order markup is typically 10–15% overhead and 10% profit on labor and materials, plus bond and insurance costs. Know your contract's required markup schedule before submitting.