How do I know if a change order is fair?
Most owners argue about the price. The stronger question is whether the change is owed at all.
Review every change order in four steps: entitlement (is this actually extra work under the contract?), quantity, unit pricing against the schedule of values, and schedule impact. Never sign a change order with 'schedule impact TBD' — that phrase is a future claim.
The four-step review
- Entitlement: point to the contract clause or drawing that makes this extra work rather than included scope
- Quantity: verify measured quantities yourself or through your consultant, not from the narrative
- Pricing: compare unit rates to the original bid and schedule of values, and confirm markup is within the contract cap
- Time: require the number of days claimed and the critical-path activities affected, in writing, or a waiver of time
Documents to require with every request
- Subcontractor quotes, not just the general contractor's summary
- Labor hours by trade with rates that match the contract
- Material invoices or supplier quotes
- A marked-up drawing showing exactly what changed
The clause that saves the most money
Cap overhead and profit markup on change orders — commonly 10% and 5%, with a lower tier on subcontracted work — and require that all changes be priced before the work proceeds except in a genuine emergency. Owners who add that language before signing the prime contract argue about change orders far less later.
Common questions
- Can I refuse to sign a change order?
- You can dispute it, and you should when entitlement is unclear. Respond in writing within the contract's notice period, state your position, and direct the contractor whether to proceed — silence is the one response that reliably costs money.
Start with a conversation.
Tell us where the project stands. We'll respond within one business day — with next steps, or a candid reason it isn't the right fit.
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