Change Order vs Estimate: What Is The Difference And Why It Matters
Understand how estimates differ from signed change orders and what that means for cost approval.
Homeowners often treat an estimate and a change order as the same thing. They are not.
Estimate
An estimate is a pricing proposal. It helps scope expected cost but is not always final authorization.
Change order
A change order is a contract modification for added, removed, or revised work after the base agreement.
Why the distinction matters
- Estimates can be revised as assumptions change.
- Change orders are approval documents tied to payment obligations.
- A signed change order should document scope, price basis, and schedule impact.
Before signing a change order
- Confirm exactly what changed from the base contract.
- Verify labor/material quantity assumptions.
- Validate markup and OH&P math.
- Ensure exclusions and assumptions are written clearly.
If those elements are not present, ask for a revised draft first.