Change Order Pricing and Documentation
Price changes correctly and document authorization before the work proceeds.
Short answer
A change order should capture scope, price, schedule impact, and written authorization before the work is performed. Pricing must include direct cost, burden, overhead recovery, and profit — not just materials.
01
Why changes destroy margin
Extra work performed without documentation is often performed for free. Roofing is especially exposed because deck damage and hidden conditions are discovered mid-job.
The exam tests the discipline of authorization, not negotiation tactics.
02
Price the change completely
A change is a miniature job and needs the same cost structure.
- Material and delivery
- Labor at the burdened rate
- Equipment and disposal
- Overhead recovery
- Profit
- Schedule impact and any resulting cost
04
Set the mechanism in the original contract
The base contract should define how changes are requested, priced, approved, and documented, including how unforeseen deck conditions are handled.
That clause is the practical link between trade knowledge and business control.
Official-source check
Requirements, references, and testing procedures can change. Verify current details with Florida DBPR, the CILB, and the current exam vendor before acting.
Candidate questions
Frequently asked questions
Can I proceed on a verbal change?
It creates significant collection risk. Obtain written authorization from someone with authority to approve.
Should change orders include overhead and profit?
Yes. A change consumes overhead and carries risk like any other work.
What about hidden deck damage?
Address it in the original contract with a defined pricing and authorization mechanism.