Your Cart
Loading

The change order that ate the profit.

A change order is not the same work at a smaller scale. It interrupts a sequence somebody already planned, it carries its own admin, and it usually arrives when the crew is committed elsewhere. Price it at your base markup and you are doing the disruptive work at the easy-work rate. Enter one below.

$

Labor, material and sub cost for the added work.

%

What you add on base contract work.

The disruption premium

Re-sequencing, a second mobilization, the admin to write and chase it, and the schedule risk you just absorbed. Typical range is 10–25%.

%
hrs
Price this change order at
$5,893
$5,124 at your base markup, plus 15% for disruption
Base markup only
$5,124
the number most people quote
Premium adds
$769
for the disruption
Gross profit
$1,693
on this change

The bigger leak is not the premium. It is the changes that get done on a handshake and never make it onto an invoice at all.

$8,294
given away a year in unwritten changes

Why a change order costs more per dollar than the base contract

What changesWhy it costs you
The sequenceWork already planned gets moved. Trades that were stacked get separated.The crew that was going to do it in one pass now does it in two.
MobilizationA sub who already demobilized comes back for a half day.
AdminSomeone prices it, writes it, sends it, chases the signature and re-bills it.That person is overhead, and this is unbudgeted overhead.
Schedule riskIf the change pushes completion, you own the delay unless the change order says otherwise.Every change order should extend the contract time in writing, not just the price.

The rule that saves the most money is not a number. No signature, no work. A change order priced and signed before the work starts collects at close to 100%. The same change discussed in a truck and invoiced three months later collects at whatever the client remembers agreeing to.