Change orders and contracts

How do you track change orders across multiple projects?

Use one change log format for every job, track each change through the same status stages, review pending and unbilled changes company-wide every week, and connect each approved change to the job budget and the next invoice.

Two construction professionals review paper plans beside a tablet at a jobsite workbench.
Plan reviews connect field conditions, drawings, and the next decisions on a job. AI-generated illustration.

To track change orders across projects, put every change on every job into one consistent log with the same fields and the same status stages, from potential change to request to approved to billed to paid. Review the company-wide list every week for aging and unbilled items, and make sure each approved change updates the job budget and lands on the next invoice. When every PM tracks changes their own way, nobody can answer the owner's simplest question: how much change work is out there, and how much of it is signed?

Change orders affect revenue, cost, cash, and schedule at once. Tracking them per job in scattered spreadsheets and email threads hides all four.

Why change orders slip through the cracks

  • Each PM uses a different log, or none.
  • Potential changes discussed in the field never get written down.
  • Approved changes do not reach the budget, so job cost reports show false overruns.
  • Approved changes are not billed until closeout.
  • Nobody sees aging, so requests sit for months unanswered.

Step 1: Standardize the change log

Use one template on every job with these fields at minimum:

Fields every change order log should have
FieldExample
Job number and name2417, Riverside Clinic TI
Change IDPCO 12 / COR 8 / CO 6
DescriptionAdd 3 data drops in exam rooms
SourceRFI 22, owner email 5/6
Date identifiedMay 6
StatusPotential, submitted, approved, rejected, billed, paid
Amount requested / approved$4,200 / $3,950
Time requested / approved2 days / 1 day
Date submitted / approvedMay 8 / May 20
Cost code26-1000 Electrical
Billed to date and paid to date$3,950 / $0

A change order log template is a good start. The point is that every job uses the same columns, so the logs can be combined.

Step 2: Use the same status stages everywhere

  1. Potential change (PCO): identified, not yet priced. Capture it the day it comes up.
  2. Change order request (COR): priced and submitted.
  3. Approved change order (CO): fully executed.
  4. Rejected or withdrawn: closed, with a reason.
  5. Billed: on a pay app or invoice.
  6. Paid: cash received.

Consistent stages make roll-ups meaningful. "Pending" means the same thing on every job.

Step 3: Capture potential changes early

Most lost change revenue starts as a conversation that never became a written PCO. Make it easy for supers and foremen to log potential changes from the field (a text, a photo, a form) and have the PM review them weekly. Link them to the daily log entry where the issue came up.

Step 4: Connect approved changes to the budget

When a change is approved, update the job's contract sum and add budget to the right cost codes. If you skip this, the job cost report shows the change's costs with no matching budget and the job looks like it is overrunning. That distorts your WIP report too.

Step 5: Connect approved changes to billing

Every approved change should appear as a new line on the next pay application or invoice. Reconcile the log against the pay app monthly. See how to invoice change orders without delays.

Step 6: Review the portfolio every week

Once a week, pull a company-wide view:

  • Total submitted but unapproved, by job and by age (0 to 15, 16 to 30, 31 to 60, over 60 days).
  • Approved but unbilled.
  • Billed but unpaid.
  • Work in progress on unsigned changes, which is your biggest risk.

Ask the PM about anything over 30 days. That one meeting catches most problems before they become claims. It also gives the owner a real number for the backlog conversation with the bank or bonding company, since signed but unbilled changes are revenue the company has already earned the right to bill.

Worked example: a contractor with six active jobs

Say a commercial GC runs six jobs. The owner asks each PM for a change order summary and gets three spreadsheets, two email threads, and one "I'll get back to you." After standardizing on one log, the first company-wide roll-up shows:

Example company-wide change order roll-up
StatusCountAmount
Potential, not priced11about $38,000 (estimated)
Submitted, not approved9$71,500
Of those, over 60 days old3$29,800
Approved, not billed5$44,200
Billed, not paid4$26,900

Two findings jump out. First, $44,200 of approved change work was never billed. Most of it goes on the next pay apps. Second, three requests worth $29,800 have been sitting for over two months. The owner calls each client directly. Two are approved within a week, and one turns out to be disputed, which the GC now handles as a formal claim under the contract rather than letting it age further.

Who owns change order tracking

A log is only as good as the person keeping it current. Split the work clearly. The superintendent or foreman flags potential changes from the field the day they come up. The PM prices them, submits them, and chases approval. The office (a project accountant or office manager) confirms that approved changes reached the budget and the next invoice, and runs the weekly company-wide roll-up. The owner reviews the roll-up and makes the calls on anything aging past 30 days or turning into a dispute.

Tracking change orders you owe subcontractors

The same discipline applies in the other direction. Approved owner changes usually create changes to one or more subcontracts. Track those on the same log, linked to the owner change, so you know your margin on each change and you do not approve a sub's change before the owner has approved yours. When a sub's change has no matching owner change, flag it. That is cost the GC is absorbing, and it should be a conscious decision, not a surprise at closeout.

Mistakes to avoid

  1. Letting each PM invent a log format.
  2. Tracking only approved changes and ignoring potential ones.
  3. Approving changes without updating the job budget.
  4. Never reconciling the log with billing.
  5. Not reviewing aging, so old requests become unrecoverable.
  6. Keeping the log in someone's personal folder.

Templates and tools

Start with the change order log template and the construction change order template. Pair them with a job cost report template so approved changes show up in the budget. For the management side, see how to manage multiple construction projects at once and change order disputes and how to avoid them.

Smart Business Automator keeps change orders on each project with status and approval history, and shows them across jobs alongside job costing and WIP views. See change order approval automation.

Frequently asked questions

What is the difference between a PCO, a COR, and a CO?

A potential change order (PCO) is an identified possible change. A change order request (COR) is a priced proposal sent for approval. A change order (CO) is the executed contract amendment. Contractors use different labels, but the stages are similar.

How often should change orders be reviewed?

Weekly at the job level and weekly or biweekly at the company level, with special attention to anything submitted more than 30 days ago.

Should rejected change orders stay on the log?

Yes. Mark them rejected with the reason and date. They may support a later claim and they show patterns by client.

Can a spreadsheet work for change order tracking?

For a few jobs, yes, if everyone uses the same template and it lives in a shared location. As job count grows, connecting changes to budgets and billing by hand becomes the weak point.

Written and edited by

Maurice Francois writes and edits construction operations guides for Smart Business Automator. More from Maurice on the Scaling Legends podcast.

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