Change Order Form - Construction Information Services 2025

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Contractors can add a charge for change orders within the contract to help deter owners from making constant changes. Generally, a construction change order markup of 10% of the net direct cost is considered an acceptable and reasonable charge for change orders.
The change order form should include: The original contract value. The value of all past approved change orders (if any) The cost of the current change order. The new proposed contract value (including all of the change orders, positive or negative)
What is a change order? A change order is a written amendment to an existing contract after the effective date that alters the work, the contract sum, or the contract time. While contracts are intended to be the final word for projects, sometimes things need to change.
The standard operating procedure for change orders is typically where you prepare a document with a small scope of work of the additional work to be performed, a total amount, and supporting back up information to prove why you are charging this amount. Its kind of like a mini-estimate for the work to be performed.
Change orders include details such as the scope of changes, reasons for the modifications, impacts on project timeline and costs, as well as approvals from relevant parties.

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The contractor prepares a change order proposal quoting a price for the extra work. Once the owner and contractor have agreed on scope, price, and schedule, a formal, written change order is prepared and signed by all parties. Then, the contractor proceeds to perform the changed work.
Markup: This refers to the amount that the contractor adds to costs (both direct and overhead) to arrive at a profitable selling price. You must also factor the markup into change order prices. A common industry standard for markup is 15 percent.

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