Change orders: write it down first

If a change isn't in writing and signed before you start it, expect to argue about it at the final. The client remembers "sure, go ahead." They don't remember agreeing to $1,400.

A change order is short. What's changing, why, what it costs, how it moves the schedule, when it's paid, and both of you agreeing to it. Here's how to write one, and how to handle the worst kind: the problem you find behind the wall.

When you need one

Any time the job changes from what the client signed. The common ones:

• The client asks for more. A niche in the shower. Tile up to the ceiling instead of 7 feet. A second vanity light.
• Hidden conditions. Rot under the tub. A drain line that isn't sloped. Wiring that has to be fixed before you can close the wall.
• A material swap. The tile they picked is discontinued, or they changed their mind after it was ordered.
• Something moves. The vanity moves 2 feet, so the plumbing moves with it.
• A code or inspector requirement that wasn't in the original scope.

Changes that cost less count too. If the client drops the heated floor, write a credit. It keeps the contract total honest.

What goes on it

1. Change order number. CO 1, CO 2. Tie each one to the job.
2. What changes, in plain words. "Replace 12 sq ft of rotted subfloor under the tub with 3/4 in. plywood."
3. Why. Client request, hidden condition, material swap. One line.
4. The price, with labor and materials. If it's a credit, show it as one.
5. The schedule effect. "Adds 1 working day." If none, say none.
6. The new contract total: the old total, this change, the new total.
7. When it's paid. At approval, or before the extra work starts.
8. Approval: the client's signature and date, and yours.

Photos help, especially on a hidden condition. Attach them.

Hidden conditions: say it in the contract first

The best time to handle the rot under the tub is before you've seen it. Put a line in the original contract that says how hidden conditions work:

• You'll stop and show the client what you found, with photos.
• You'll price the fix in writing as a change order.
• The extra work starts after they approve it.
• If they don't approve it, what happens next: you close it up as-is, or the work stops while you sort it out.

Then when you pull the tub and find soft subfloor, nobody's surprised. You're following the process both of you signed. The conversation goes from "you never said anything about this" to "okay, show me."

Get paid for it before the work, or at approval

A change order is a small job inside the job. Treat it like one.

Get paid when the client approves it, or before you start the extra work. Don't roll it into the final. That's how a $600 change turns into a $600 argument, three weeks later, when the client has forgotten why the floor needed replacing.

On a hidden condition, paying up front also settles the question of whether the work was needed. They saw the photos, approved the price and paid. It's done.

How it changes the rest

One approved change touches more than the price.

• The contract total. Every invoice after this shows the new total, the approved changes, and the balance. See what to put on a contractor invoice.
• The schedule. If it adds days, the dates after it move. Tell the client the new walk-through date.
• The materials list. More plywood, a different tile, more grout. Update the order before the supplier run.
• The payment schedule. If you get paid for the change at approval, the rest of the schedule stays the same. If not, add a line.
• Texas lien waivers. A waiver for an earlier payment shouldn't sweep in a change you haven't been paid for. The progress forms leave room for pending changes. Keep each waiver matched to what was actually paid. See Texas lien waivers.

An example

Ridgeline Tile & Bath pulls a tub and finds the subfloor soft along the wall. They stop, take photos and show the owner.

That afternoon, the owner gets CO 1 on their phone: replace 12 sq ft of subfloor, reason: hidden condition, $780, adds 1 working day, contract total goes from $14,200 to $14,980, payment due at approval. They approve and pay. The crew cuts out the bad section the next morning.

At the final, nobody brings it up. It was settled the day it was found.

The checklist

Copy this into your notes:

1. Change order number and job
2. What changes, in plain words
3. Why: client request, hidden condition, swap, code
4. Price: labor and materials, or the credit
5. Schedule effect, in working days
6. Old contract total, this change, new total
7. When it's paid: at approval, or before the work
8. Photos, if it's a hidden condition
9. Client's signature and date, and yours
10. Then: update the materials order and tell the client the new dates

Sources

• Texas Property Code, chapter 53, section 53.284: statutes.capitol.texas.gov

The Texas notes explain the Property Code in plain terms. They are not legal advice. For a specific job or dispute, talk to a Texas construction attorney.