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Guides

Guides to reading a change order

Practical guides and analysis for understanding, reviewing, and negotiating construction change orders.

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Change order vs. estimate: what’s the difference, and why it matters

An estimate is a price proposal before you sign; a change order changes a contract you already signed. How to compare bids, and what a change order must state.

analysis

Change order red flags homeowners should never ignore

Common warning signs in pricing, scope, and documentation that often signal avoidable overpayment.

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Fair overhead and profit (OH&P) markup: how to check a change order

Six checks for the overhead and profit (OH&P) markup on your own change order: the base, compounding, subcontractor markup, duplicate charges and credits.

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How to read a construction change order without missing cost risk

Learn the exact fields to verify in a change order and the questions that reveal hidden cost risk quickly.

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Is my contractor overcharging me? A practical homeowner checklist

A practical checklist for spotting inflated change orders, unclear markups, and pricing gaps before you approve.

methodology

When to approve a change order right away (and when to pause)

What should be in writing before extra work starts, how public owners handle changes that cannot wait, and when to pause instead of signing.

methodology

Change order negotiation: 12 questions to ask about price, markup and OH&P

Twelve questions about scope, labor, materials, markup and overhead and profit, each matched to what public contracts require a contractor to show.

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Material markup in construction: what published contracts allow and what receipts show

What a material line should show, what public contracts add on top of invoice cost, and how receipts, discounts and waste change the number.

analysis

Construction labor rates by ZIP code: why an hourly rate might look “high” (and when it isn’t)

What sits between a wage and the hourly rate on a change order: payroll costs, overhead and profit, and why the same trade is priced differently by location.

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Time and materials (T&M) change orders: what you should see on the invoice

What a T&M ticket or sheet must show, who signs it, and how daily records roll up into a T&M invoice or change order, with a worked example.

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Change order vs. contract scope: how to tell if you’re paying twice

How to check whether a change order is extra work or already in the contract: what counts as a change, conflicting documents, hidden conditions and credits.

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“Lump sum” change orders: how to ask for a cost breakdown without starting a fight

What to request behind a lump-sum change order, the breakdown public owners require, an email script, and what to do if your contractor refuses.

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Typical change order markup (OH&P): what public contracts allow

There is no single typical overhead and profit markup. See the change order markup that federal and state contracts publish, and what each percentage covers.