How to Read a Change Order Before You Sign It

A practical guide to reviewing change orders on a new construction project so you understand the cost, schedule, and scope impact before agreeing.

A change order is a formal amendment to a construction contract. It documents a change in scope, cost, or timeline after the original agreement was signed. Change orders are a normal part of building. The issue is not whether they occur. The issue is whether each one is clear enough to evaluate before you approve it.

Start by confirming that the change order describes the change in specific terms. A vague description such as adjustment to kitchen layout tells you almost nothing. A useful change order specifies exactly what is being added, removed, or modified, including materials, dimensions, and location.

Next, look at the cost breakdown. A credible change order separates labor, materials, and any markup or administrative fee. If the document only shows a single lump sum, ask for an itemized version. This is not about distrust. It is about having a record that can be checked against the finished work.

Schedule impact deserves equal attention. Some changes add days or weeks to the project. Ask whether the change order includes a revised completion date, and whether that date is binding or an estimate.

It is also worth asking how the change order affects any allowances already established. A change to the kitchen layout, for example, might increase or decrease the amount of countertop or cabinetry needed, which affects an allowance set earlier in the process.

Before signing, confirm who has authority to approve change orders on your side and make sure that approval is documented in writing, even if it is just a signed email. Keep every change order in one file, in order, so you can reconstruct the full history of the project if needed.

A change order that is specific, itemized, and dated protects everyone involved. One that is vague or verbal creates the kind of ambiguity that becomes expensive to untangle later.