What is a change order and when do you issue one?
A change order (CO) is a written amendment to an existing subcontract that modifies the scope, cost, or schedule of a sub's work. On a commercial project, you'll issue change orders when:
- The owner changes the design or scope mid-construction
- Unforeseen site conditions require additional work
- You need to accelerate or de-scope a trade to stay on schedule
- Material or labor costs shift materially from the original bid
Every CO creates a paper trail. Without a signed CO, scope disputes become "my word vs. yours" — which is expensive for everyone.
The change order lifecycle in Spandrel
1. Create the change order
From the project's Contracts tab, open the relevant subcontract and click New Change Order. You'll specify:
- Description of the scope change
- Cost adjustment (positive for additions, negative for deductions)
- Schedule impact (if any)
- The GL/cost code the change is coded to
Spandrel previews the budget impact in real time before you finalize — you can see exactly how the CO will shift the cost code balance before anyone signs.
2. Route for internal approval (optional)
For COs over a configured threshold, you can route internally before sending to the sub. The internal approval step records who reviewed and when — important for audit purposes.
3. Send to the subcontractor for e-signature
Once internally approved, Spandrel generates the change order document and sends it to the sub's primary contact via email. The sub opens a browser-based signing page — no account, no app needed. They review the scope and cost, enter their signature, and submit.
4. The CO is executed
Both parties receive the executed document with a tamper-evident certificate. Spandrel stores it permanently in the project document record.
5. Budget rolls up automatically
The moment the CO is fully executed, its value adds to the Committed Costs column on the budget line it's coded to. You see the updated budget in real time — no manual entry.
Tracking CO status across projects
The Change Orders tab (accessible from each project or globally from the sidebar) shows every CO in flight:
- **Draft** — created but not yet sent
- **Pending Signature** — sent to sub, awaiting execution
- **Executed** — fully signed; cost is committed
- **Rejected** — sub declined; no budget impact
Stalled COs (sent but not signed after N days) are flagged so you can follow up before they hold up the schedule.
Handling owner-initiated COs (OCOs)
When the change originates from the project owner, you'll typically receive an Owner Change Order before you issue a sub-level CO. Spandrel lets you link sub-level COs to a parent OCO so you can track the full pass-through cost impact — what you billed the owner vs. what you owe your subs.
Why e-signatures matter on change orders
A CO without a signature is a proposal, not a contract. Change order disputes are the #1 source of subcontractor litigation on commercial projects. Spandrel's e-signature process:
- Creates a time-stamped record of when the sub opened, reviewed, and signed
- Generates a tamper-evident PDF with a certificate of completion
- Logs the signer's IP address and device metadata
- Is legally equivalent to a wet signature under the ESIGN Act and UETA
If a dispute ever reaches arbitration or litigation, the signed CO document and its certificate are your primary exhibit.