How to Invoice for a Change Order

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A change order is a document used particularly by construction contractors to acknowledge a change made to a certain aspect of the construction project. Most contractors charge a fee for every change order made during construction. The policies regarding change orders are generally discussed with the client prior to the contract being signed. These policies are included in the contract.

Consult the guidelines for change order policies. Every contractor has policies regarding change orders. They often cause delays in construction. Most contractors charge the customer a fee every time the order takes place. Change orders are also required to keep all details of the construction written on paper to avoid potential misunderstandings. The contract between the two parties usually lists dates where changes to certain activities are no longer expected.

Complete the general information. A change order contains the date the change is being made and the name of the customer. When this form is completed, it is a legal contract and is attached to the original contract between the two parties.

Describe the type of change. A change order form contains a description of the exact change the customer is requesting. The form should also list any different types of materials, including the type that was originally agreed to and the type the customer now wants. The contractor should include item numbers and colors if applicable.

Calculate the cost for the change. The amount it will cost to change this particular aspect of the construction project is calculated. The contractor includes the difference in price for the materials and the difference in price for labor. This amount is placed on the change order form.

Add in the fee for the change. Whenever a change order is done, the contractor charges a specific fee for accepting the change. The fee is discussed within the original contract and is designed to protect the contractor from customers continuously changing their minds about activities within the project.

Obtain the customer’s signature. Before the contractor actually accepts the change and begins working on it, the customer must sign it.