Pricing change orders: a contractor's guide to getting paid for extra work
Almost every job has changes: a moved wall, an added soffit, an owner upgrade. Pricing them quickly and clearly is how you get paid for the work and keep the relationship good. Here's a practical approach.
- Read your contract's change order clause first: it sets the markup, deadlines and paperwork.
- Price labor, material, equipment, subs, markup and time impacts separately.
- Get written approval before doing the work whenever you possibly can.
Start with the contract
Your contract usually controls how changes work: who can approve them, how much notice you must give, what markup is allowed on your own work and on subs, and whether you must submit within a certain number of days. Missing a notice deadline can cost you the right to be paid, so know it before the first change comes up.
Build the price
- Labor: hours by trade times your burdened labor rate (see our labor burden guide). Include supervision if the contract allows it.
- Material: from your takeoff, with waste (see waste factors), plus delivery and tax.
- Equipment: lifts, scaffolding or tools needed for the change.
- Subcontractors: their quotes, leveled the same way as on bid day.
- Markup: overhead and profit as allowed by the contract.
- Time: if the change affects the schedule, ask for the extra days in the same change order.
Include backup
A one-line lump sum invites pushback. Attach a short breakdown, the drawing or RFI that caused the change, and photos if it's a field condition. Clear backup gets approved faster.
Deleted work (credits)
When scope is removed, the owner will expect a credit. Price it honestly from your estimate, and account for material already bought or fabricated and any restocking fees.
When you have to proceed before approval
Sometimes the schedule forces you to keep going. If so, get a written direction to proceed (an email from the authorized person is better than nothing), track time and material daily on signed tickets, and price it as soon as possible.
Related: estimating contingency · markup vs. margin.
Published October 26, 2026. We do not use affiliate links on this page; see our Affiliate Disclosure.