Change orders document changes to the original agreement, such as added work, design changes, or unforeseen conditions. A proper change order describes the change and states its effect on the contract price and schedule, and it is signed by the parties before the work proceeds.
Work performed on a verbal approval is one of the most common sources of disputes and unpaid invoices in construction. Tracking pending and approved change orders, and including approved changes in pay applications promptly, protects both margin and cash flow.