Handbook / Contracts and proposals

What is a change order? How freelancers and contractors use them

Projects change. Clients have new ideas, discover new needs or change their minds. Change itself is not a problem; doing changed work without agreeing on the cost and timing is. A change order turns a casual request into a clear, written agreement, protecting both you and the client.

What a change order is

A change order is a written document, signed or approved by both parties, that modifies an existing agreement. It records:

• what is changing in the scope
• the effect on the price
• the effect on the timeline
• any other changed terms

Change orders are standard in construction, where changes to plans and materials are common, but they work for any project-based business: design, development, writing, consulting, events and trades.

Why change orders matter

Without them:

• extra work is done for free or argued about later
• deadlines slip without agreement
• invoices surprise clients
• both sides remember the conversation differently

Cornell's Legal Information Institute explains that a modification is a change to a contract's terms, and notes that consideration, something of value exchanged, is a basic element of a contract. A written change order makes the modification and what is being exchanged for it clear. Rules on modifying contracts vary, so follow what your original agreement says.

Set it up in your agreement

Your contract or statement of work should include a change clause explaining:

• how the client requests changes
• that changes will be quoted before work starts
• that work on changes starts only after written approval
• how changes affect price and deadlines
• your rate for additional work, if you use one

This makes change orders a normal part of the process, not a confrontation.

What a change order should include

• change order number and date
• project name and reference to the original agreement
• description of the change
• reason, if useful
• cost change: added or reduced
• timeline change
• payment terms for the change
• signature or written approval from both sides

A sample change order

A simple change order might read:

• Title: Change order 3 for [project], dated [date], under the original agreement of [date].
• Change: add two extra product pages to the website.
• Cost: an additional [amount], due on completion.
• Timeline: launch moves from [date] to [date].
• Other terms: all other terms of the original agreement remain unchanged.
• Approval: signed or approved in writing by the client and by you, with dates.

How to handle a change request

1. Thank the client for the request.
2. Check whether it is within the original scope.
3. If it is outside, explain that it is a change and you will send a change order.
4. Estimate cost and timing; see how to quote a job.
5. Send the change order and wait for approval.
6. Start the work once approved, and log it.

Being prompt and friendly keeps change orders from feeling bureaucratic.

Small changes

You may choose to absorb very small changes as goodwill. If you do, say so in writing, such as "I have added this at no charge", so clients understand where the line is. Repeated small changes add up; this is how scope creep happens.

Billing for changes

Include approved changes on invoices as separate lines with the change order number. For long projects, add them to the relevant milestone in progress billing. Keep a change order log so you can reconcile the final invoice against the original price plus approved changes.

If the client refuses

If a client will not approve a change order, do not start the extra work. Offer options: continue with the original scope, adjust the request, or discuss alternatives. If disagreements escalate, see difficult clients.

Change orders on fixed-price work

Change orders are especially important on fixed-price projects, where the price was based on a defined scope. Any addition the client asks for changes the basis of that price. Without a change order, extra work comes straight out of your margin.

Keep the tone positive

Present change orders as a normal, helpful part of managing the project: they give the client a clear choice and avoid surprises on the final invoice. Most clients appreciate knowing the cost and timing before they decide. Sending them promptly and in a consistent format shows professionalism and keeps the relationship on good terms.

Change orders and your records

Store each approved change order with the original agreement. Together they form the full record of what the client agreed to buy, which helps if there is ever a dispute about what was included or what was paid. At the end of the project, check that the final invoice equals the original price plus or minus all approved changes, and that nothing was done without an approval on file.

Include a change clause in every agreement, put every scope, price or timeline change in a numbered written change order, start changed work only after approval, log changes and bill them clearly.