Change order: definition, example, and why it matters
Always document changes in writing — verbal change orders are the #1 source of collection disputes in trades. The customer signs, the contractor adjusts the estimate, and the difference flows into the final invoice.
Short definition. A signed addendum modifying the price, scope, or schedule of an existing job.
Category. Change order is a invoicing term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds change order into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does change order mean?
Always document changes in writing — verbal change orders are the #1 source of collection disputes in trades. The customer signs, the contractor adjusts the estimate, and the difference flows into the final invoice.
Related terms
Scope of work — The written description of exactly what work is included in a job.
Estimate — A non-binding written quote of the cost of a job, sent before work begins.
Quote — A fixed-price offer to perform a job that, once accepted, is binding.
