How to track change orders so you get paid for extra work
Unapproved or untracked change orders are one of the most common ways contractors do extra work for free. A simple, consistent process fixes that.
Why change orders slip
Changes begin as a conversation on site, an RFI response or a revised drawing. Work starts, the paperwork follows weeks later, and by then the cost is sunk and the approval is argued. The fix is to treat every change as a tracked item from the moment it is identified.
A six-step change order process
- Identify: catch changes in RFIs, drawing revisions and field directions.
- Price: prepare an RFQ or proposal with labor, material, equipment and subcontract backup.
- Submit: send it to the GC or owner with the schedule impact.
- Approve: get written approval before starting the work whenever possible.
- Issue downstream: issue matching subcontractor change orders so sub contracts reflect the change.
- Update the books: revise contract value and budget so profit by job stays accurate.
What to track for every change order
| Field | Why it matters |
|---|---|
| Number and description | One reference across field, office and accounting |
| Status (draft, submitted, approved, rejected) | Shows pending exposure |
| Amount and cost backup | Speeds approval |
| Schedule impact | Avoids time disputes later |
| Linked subcontract changes | Keeps payments within contract limits |
Watch pending change orders
Costs on work that has not yet been approved are a risk. Reporting pending change orders next to the approved contract value shows how much of your projected profit depends on approvals still outstanding.
Stratacore’s job-cost dashboard lets teams issue change orders, track them to approval and see the effect on contract value and margin, and our project management team prices and routes them.