Key takeaways
- A change order form must carry a sequential number (CO-001, CO-002) matching the convention in AIA Document G701, so every change is traceable to the original contract.
- The cost section should be left blank on the template for the contractor to fill in on site: AIA G701 uses the same fill-in-on-site approach for the contract sum adjustment field.
- The schedule-impact field must state a specific number of additional calendar days: AIA G701 requires a specific day count, including zero, not a vague phrase like 'a few days'.
- A change order is legally distinct from a daily job report. A daily report records what happened on site. A change order amends the contract scope, cost, and schedule, and requires both parties' signatures.
- If a change order involves a safety issue under OSHA 29 CFR Part 1926, a billing dispute, or a cost above the contractor's pre-set threshold, the decision should go to a named manager rather than being handled by an AI draft alone.
Summary
How a change order differs from a daily job report
A change order is a legal amendment to the original contract. It changes the scope of work, the contract price, and the completion date, and both parties must sign it before any new work begins. A daily job report records what happened on site on a specific day: crew hours, materials used, work completed, and delays. The two documents serve different purposes and neither substitutes for the other.
This template covers the change order form. For the daily job report, see What Should a Daily Construction Job Report Include?, which covers the ten sections a complete daily report needs, including a field for logging change order requests that arise during the day. The two documents are companion records: the daily report flags that a change was requested; the change order form documents what was agreed and authorizes the work.
AIA Document G701, the American Institute of Architects' standard change order form, is the most widely referenced change order form in U.S. construction. The eleven fields in this template follow G701's structure. Small contractors who use a custom form rather than G701 directly should include all eleven fields to achieve the same level of documentation.
The eleven fields every change order form needs
Each field below names what to write, what to leave blank, and the corresponding field in AIA Document G701 where one exists.
Project name and address. The full name of the project and the site address. AIA G701 uses 'Project' as its first header field. This ties the change order to a specific job in case the contractor is running more than one project at a time.
Client name and contact. The client's full legal name (individual or business entity) and a phone number or email address. Use the same name that appears on the original contract. AIA G701 uses 'Owner' for this field. A name mismatch between the contract and the change order can complicate enforcement.
Original contract number and date. The reference number and signing date of the original contract this change order amends. AIA G701 uses this field to link each change order back to the prime contract. Without it, the change order floats as an unattached document.
Change order number and date. A sequential number in the format CO-001, CO-002, CO-003, and the date the change order is prepared. AIA G701 uses a sequential 'Change Order Number' field. Never reuse a number, even if a previous change order was voided; mark the voided one as VOID and keep it in the file.
Requested by. The name of the person who requested the change: the client, the architect, the project manager, or the contractor. This field records whose decision triggered the change and is useful if the reason for the change is disputed later.
Description of the change. A plain-English description of exactly what work is being added, removed, or modified. AIA G701 requires a description specific enough to identify the change without reference to other documents. Example of a specific description: 'Add one exterior GFCI outlet on the north wall of the garage, 18 inches above finished floor.' Example of a vague description that creates disputes: 'Additional electrical work.'
Reason for the change. Why the change is needed: a client request, a site condition discovered after work began, a design revision, a code requirement, or a material substitution. One or two sentences is enough. This field protects the contractor if the client later questions why the scope changed.
Effect on project schedule. The number of additional calendar days the change adds to the project, and the revised expected completion date. AIA G701 uses the field: 'The Contract Time will be increased / decreased / unchanged by [number] days.' Write a specific number, including zero. Do not write 'a few days' or 'TBD': vague schedule language means the client has not agreed to any extension.
Effect on cost. Leave this section blank on the template. AIA G701 uses the field: 'The Contract Sum will be increased / decreased / unchanged by [amount].' The contractor fills this in on site after assessing actual labor hours and materials. Include lines for: additional labor cost, additional materials cost, subcontractor cost if applicable, and total additional cost. Both parties sign after the contractor completes this section.
Materials list. A line-item list of any materials required for the change: item name, quantity, and unit of measure. This list supports the cost calculation and gives the client visibility into what they are paying for. It also serves as a record if a material is substituted after the change order is signed.
Signatures and dates. Signature lines for the contractor and the client, each with a printed name line and a date line. AIA G701 has three signature blocks: architect, contractor, and owner, each with a date. Include a statement directly above the signature lines: 'No work described in this change order will begin until both parties have signed below.' Under the federal E-SIGN Act (15 U.S.C. Chapter 96, Section 101), electronic signatures carry the same legal effect as handwritten signatures in most commercial contexts, but consumer consent requirements under Section 101(c) apply; consult an attorney before using electronic signatures on construction contracts.
Where AI fits in the change order process and where it does not
An AI agent can help a small contractor with the drafting steps of a change order: turning a crew lead's field notes into a clear description of the change and a plain-English reason statement. In Dave by voolama (hellodave.ai), a managed AI workflow platform operated by voolama LLC, a crew lead submits field notes through a User Interaction task in the Task Inbox (found under Tasks in the sidebar). The Task Inbox is accessible to users with the Admin or Use role in Dave by voolama. An AI agent then drafts the description and reason fields based on those notes.
What the AI does not do in this process:
- Calculate the cost. The cost section is always left blank for the contractor to fill in after assessing labor and materials on site. AIA G701 leaves the contract sum adjustment as a contractor-completed field for the same reason.
- Set the schedule-impact figure. The number of additional calendar days is a judgment the contractor makes based on crew availability and site conditions.
- Sign the form. Signatures require the contractor and client in person or via a documented electronic signature process meeting 15 U.S.C. Chapter 96, Section 101 (E-SIGN Act).
- Decide whether to proceed on safety-related changes. If the change involves a safety issue governed by OSHA 29 CFR Part 1926 (Safety and Health Regulations for Construction), a billing dispute, or a cost above the contractor's pre-set threshold, the change order draft should route to a Human Review task in Dave by voolama for a manager's decision before it goes to the client. In the Task Inbox, the manager sees the draft and the crew lead's field notes, then clicks Approve, Reject, or Request Changes. Every decision is logged with the acting user's identity and a timestamp in the per-tenant audit trail, supporting SOC 2 CC6.1 (logical access) and GDPR Article 30 (processing records) when those compliance modes are enabled.
For a broader look at which construction office tasks AI can help with and which ones require a person's judgment, see Where Does AI Actually Help a Small Construction or Trades Business? The guide at How Can a Contractor Use AI to Write Daily Job Site Reports? shows how a crew-lead submission workflow is built in Dave by voolama, using the same User Interaction and Human Review task pattern that applies to change order drafting.
Where this advice stops
This template covers the fields a change order form needs and the common mistakes that make one unenforceable. It does not cover:
- Legal enforceability in your state. Contract law varies by state. Some states have specific requirements for written change orders in construction contracts, including consumer protection rules for residential work. AIA G701 is a widely used reference, but it is not a substitute for a contract reviewed by a qualified attorney licensed in your state.
- Lien rights. A signed change order is not the same as a lien waiver. Lien law is governed by state statute and varies significantly. If your project involves lien exposure, consult an attorney.
- Electronic signatures. The E-SIGN Act (15 U.S.C. Chapter 96, Section 101) gives electronic signatures the same legal effect as handwritten signatures in most commercial contexts, but consumer consent requirements under Section 101(c) apply. Consult an attorney if you plan to use electronic signatures on construction contracts.
- Tax treatment of change order revenue. How change order income is reported and taxed depends on your business structure and accounting method. Consult a qualified accountant or tax professional.
- Building permits. Some change orders require a permit amendment before work begins. Check with your local building department.
- Commercial interest disclosure. voolama LLC, which publishes this template, makes Dave by voolama, a workflow platform that contractors can use to draft and route change order documents. The template fields are grounded in AIA G701 and OSHA 29 CFR Part 1926, not in voolama's commercial interests.
For a checklist of what to collect from a new subcontractor or vendor before the first payment on a change order, see Which Specific Documents Does a New Vendor Need to Provide Before You Pay Them?
Frequently asked questions
How is a change order different from a daily job report?
A daily job report records what happened on a job site on a specific day: crew hours, materials used, work completed, and delays. A change order is a legal amendment to the original contract that changes the scope of work, the contract price, and the completion date. Both parties must sign the change order before any new work begins. A daily report is an internal record; a change order is a binding document between the contractor and the client. The two documents serve different purposes and neither substitutes for the other.
Does a change order need to be a separate document from the original contract?
Yes. A change order is a written amendment to the original contract that documents a specific scope change, its cost, and its schedule impact. AIA Document G701 treats each change order as a standalone document that references the original contract by name and number. Keeping them separate means the original contract stays clean and every change has its own paper trail. This is not legal advice: consult a qualified attorney for advice specific to your contracts and state.
What is the right format for the change order number?
Use a sequential prefix tied to the project, for example CO-001, CO-002, CO-003. AIA Document G701 uses the same sequential-numbering convention. The prefix CO distinguishes the document from an invoice or proposal. Include the original contract number or project ID in the header so the change order is traceable to the right job if documents are separated.
Can an AI tool draft a change order for a contractor?
An AI agent in a platform like Dave by voolama (hellodave.ai) can draft the description and reason sections of a change order based on notes a crew lead submits through a User Interaction task in the Task Inbox. The cost section, the schedule-impact figure, and the signature lines must always be completed and reviewed by the contractor, not the AI. Any change order involving a safety issue under OSHA 29 CFR Part 1926, a billing dispute, or a cost above the contractor's pre-set threshold should route to a Human Review task for a manager's decision before the draft goes to the client.
What happens if work starts before the client signs the change order?
If work starts before the client signs, the contractor may have difficulty recovering the cost of that work. Without a signed change order, the client can argue the work was not authorized and refuse to pay for it. The 'work starts after approval' clause on the form is the contractor's primary protection against this outcome. It also protects the client from being charged for work they did not agree to. Both parties benefit from the rule, so it should appear on every change order form.
Sources
- AIA Document G701: Change Order (American Institute of Architects)
- OSHA 29 CFR Part 1926: Safety and Health Regulations for Construction (U.S. Department of Labor)
- Electronic Signatures in Global and National Commerce Act (E-SIGN Act), 15 U.S.C. Chapter 96 (GovInfo)
- What Should a Daily Construction Job Report Include? (hellodave.ai)
- Where Does AI Actually Help a Small Construction or Trades Business? (hellodave.ai)
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