contracts
Change Order Template and How to Draft One (2026)
What is a change order, and when do you need one? A change order is a written document that records an agreed change to an existing contract: a change to the scope of work, the price, the schedule, or all three. It is common in construction, engineering, IT projects and any services contract where the work can shift after signing. You need a change order whenever the work moves away from what the original contract described, because it turns a verbal "can you also do X" into a documented agreement on what X is, what it costs, and how much extra time it needs. Without one, a project drifts, and the parties argue later about who agreed to what. A change order is not a new contract. It modifies the one you already have, and it should slot into the change-control clause of that contract. If the original contract has no change-control clause, a change order still works as a signed variation, but it is worth adding a proper clause for next time. Below is a change order template you can copy and adapt, followed by guidance on how to fill each field. This is general information, not legal advice. For a large or disputed change, have the final document reviewed by a lawyer. ## Change order template ```
CHANGE ORDER Change Order No.: [NUMBER] Date: [DATE] Project / Contract: [TITLE and reference no.] Original contract date: [DATE] Between: [CLIENT / OWNER] and [CONTRACTOR / SERVICE PROVIDER] 1. DESCRIPTION OF THE CHANGE Describe exactly what is changing from the original scope: [e.g. add a second-floor layout; change the API integration from system A to system B; substitute material X for material Y]. 2. REASON FOR THE CHANGE [e.g. client request; site condition discovered; design error; regulatory requirement; third-party dependency]. 3. EFFECT ON SCOPE OF WORK Added work: [list] Removed work: [list] Revised deliverables / specifications: [reference drawing or spec no.] 4. EFFECT ON CONTRACT PRICE Original contract price: [AMOUNT] Net change from previous change orders: [AMOUNT] This change order: [+ / - AMOUNT] Revised contract price: [AMOUNT] Basis of pricing: [lump sum / unit rates / time and materials / quote attached]. Taxes: [inclusive / exclusive, e.g. GST]. 5. EFFECT ON SCHEDULE Original completion date: [DATE] Time added / removed by this change: [+ / - [N] days] Revised completion date: [DATE] [Extension of time granted: yes / no.] 6. CONDITIONS 6.1 Work on this change begins only after both parties sign. 6.2 Except as changed here, all terms of the original contract continue to apply, including payment, warranty and liability terms. 6.3 This change order is full settlement of all time and cost effects of the described change; no further claim arises from it. 7. APPROVALS Requested by: ____________________ [name, role] Date: ______ Approved for Client/Owner: ____________________ Date: ______ Approved for Contractor/Provider: _______________ Date: ______
Frequently asked questions
- What is the difference between a change order and a new contract?
- A change order modifies an existing contract; a new contract starts a fresh relationship. A change order records an agreed change to scope, price or schedule and leaves the rest of the original contract in place, including its payment, warranty and liability terms. Because it is a variation, it should follow the change-control procedure in the original contract. If the change is so large it effectively replaces the deal, a new contract may be cleaner.
- Why must a change order deal with time as well as cost?
- Because extra work usually needs extra time, and the schedule is the part people forget. A contractor who does additional work without securing an extension of time can lose the right to claim it later, and then be exposed to delay penalties for a delay the client caused. A good change order states the revised completion date and whether an extension is granted, not just the extra money.
- Can work start before a change order is signed?
- It is risky. If work starts before both sides sign, there is no agreed price or time for it, and the parties often disagree later about what was authorised. Good practice, and most change-control clauses, require written approval before the changed work begins. Where urgent work cannot wait, record the instruction in writing at once and formalise the change order as soon as possible. This is not legal advice.
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