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What is a change order? How to handle scope changes

Published · Freelancing and getting paid

A change order is a short written agreement that changes the scope, price or schedule of a contract that is already signed. It lets both sides agree extra or different work, and what it costs, before the work is done, so the final invoice holds no surprises.

When you need one

  • The client asks for something the contract or statement of work does not cover.
  • The client wants to remove part of the work, which should lower the price.
  • Something outside your control, such as late content or a change in requirements, moves the deadline.
  • The agreed approach turns out not to work and a different one costs more or less.

A useful test: if the change affects the price, the deadline or what you hand over, put it in a change order.

What a change order should include

  1. A change order number and date, so several changes on one project stay in order.
  2. The original contract: its name, date and the parties.
  3. A description of the change in plain words.
  4. The items added, removed or changed, each with its cost or saving.
  5. The price change and the new contract total.
  6. How the change is paid, if not on the contract's normal terms.
  7. Any new completion date.
  8. A statement that everything else stays the same, and signatures from both sides before work starts.

Why it matters

Most scope disputes start with "I thought that was included". A signed change order records exactly what was agreed and when. It also makes it easier to say yes to clients: you do not have to refuse extra work, you just price it.

Write the process into your contract

Your contract or statement of work should say that changes need a written change order signed by both sides, how changes are priced (for example your hourly rate), and that the schedule moves with them. The change order then follows a process the client already agreed to.

Free templates

The free change order form lists each change with its amount, shows the price increase or decrease and the new total, and records any new completion date. Use it alongside the statement of work that defines the original scope. If a project ends instead of changing, the contract termination letter covers that.

General information, not legal advice.

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