Does a change order need to be signed?

Yes. A change order is an amendment to your contract, so it should be signed by both you and the client before the changed work begins. A signed change order is what protects your right to be paid for the extra work.

Is a change order legally binding?

When it clearly describes the change, states the price and the revised contract total, and is signed by both parties, a change order functions as a binding amendment to the original contract. Verbal changes are hard to enforce — always put changes in writing and get a signature.

Free Change Order Template: What a Good One Includes

Q: What should a change order include?

A change order should include the project and parties, a change order number and date, a clear description of the change, an itemized cost breakdown, the adjustment to the contract total (new contract amount), any impact on the completion date, and signature lines for both the contractor and the client. Missing the cost breakdown, the revised contract total, or signatures is what causes payment disputes.

A change order is a small contract, and a sloppy one costs you money — or your ability to collect it. You don't need anything fancy, but you do need every essential element, because the missing piece is always the one that becomes an argument at the end of the job. Here's what a solid change order contains.

What every change order should include

Change order — required elements
Element	Why it matters
Project & parties	Ties the change to the right job and contract
Change order number & date	Keeps a clean, sequential record
Description of the change	States exactly what work is being added or removed
Itemized cost	Shows the price is fair, not arbitrary
Contract adjustment	The revised contract total after this change
Schedule impact	Any change to the completion date
Signatures	Both parties agree — before the work starts

The three that get skipped The itemized cost, the revised contract total, and the signatures. Skip any one and you've got a payment dispute waiting to happen. Include all three and you're protected.

Get the price right before you write it up

A template only formats the number — it doesn't tell you what to charge. Price the change on its full cost first: the direct cost plus the ripple cost (rework, remobilization, lost productivity), then on your margin. A flat markup on the obvious cost is how change orders lose money. Get the number right, then document it.

Put it in writing, every time

Verbal changes are unenforceable and breed disputes. Even a small change should be written, priced, and signed before the work happens. It protects your payment and keeps the client's expectations aligned with the invoice.

Price it and generate the document in one place

The BidSolid Change-Order Calculator prices the change on direct cost plus ripple, on your margin — then generates a clean, client-ready change-order document that fills itself from your inputs, with all the essential elements above. Ready to sign and send. One-time $99.

See the tool — $99

Frequently asked

What should a change order include?

Project and parties, a number and date, a clear description, an itemized cost, the revised contract total, any schedule impact, and both signatures.

Does it need to be signed?

Yes — by both parties, before the changed work begins. The signature protects your right to be paid.

Is it legally binding?

When it describes the change, states the price and revised total, and is signed, it acts as a binding amendment to the contract.

Educational only; not legal advice. Contract requirements vary by jurisdiction — consult your own agreement and local rules.