How to run a pending change order log that gets changes paid
Unapproved change orders are where contractor margin goes to die. Not the big, argued-over claims — the dozens of $1,500 to $25,000 changes that pile up quietly: the RFI answer that moved a panel, the tenant walk that added receptacles, the ASI that re-sequenced the controls. Each one is small enough that nobody chases it, and together they're 3–5% of the contract sitting unbilled while your crews have already done the work.
A pending change order log fixes that by making every change visible from the day it's identified until the day it's signed. The free template above tracks each change through the full lifecycle — PCO → COR → CO — and rolls up pending exposure, aging, schedule days, and ball in court on a summary tab. If you need the change order document itself, use our change order template; this log is how you manage all of them.
Not legal advice. Your contract's changes and claims clauses control notice deadlines, pricing rules, and whether you can be paid for work done without a signed change order. Read them first.
The change order lifecycle: PCO, COR, CO
| Stage | What it means | What you record |
|---|---|---|
| PCO — potential change order | Something changed. You may not know the price yet. | Title, origin, reference document, date identified, owner notified date, ROM value. |
| COR — change order request | You priced it and submitted it to the owner or GC. | COR number, date submitted, submitted value, schedule days requested, ball in court. |
| CO — change order | The owner or GC signed it. The contract sum and/or time changed. | CO number, decision date, approved value, schedule days approved. |
Terminology varies — some GCs call the COR a "change proposal," "PCO submission," or "change estimate," and owners using AIA documents may issue a construction change directive (CCD) that directs the work before the price is agreed (AIA A201-2017 §7.3). Use whatever labels your contract uses; the stages are the same.
Where changes come from
The log's Origin column tracks the source of every change, because the source tells you how to price it and who pays:
- RFI — an answer that adds, moves, or changes work. The most common source, and the most commonly missed: the RFI gets closed and nobody opens a PCO.
- Owner directive — the owner or tenant asks for something new. Get it in writing before you start.
- Field condition — differing site conditions, abandoned utilities, existing conditions that don't match the drawings.
- Design change / ASI — architect's supplemental instructions and bulletins that revise the documents after bid.
- Code / AHJ requirement — inspector or fire marshal requirements beyond the permitted drawings.
- Value engineering, allowance reconciliation, sub-initiated — deducts and adds that need tracking just as closely.
How to use the log
- Open a PCO the day the change is identified — even without a price. Enter a ROM so it shows up in exposure immediately.
- Notify in writing within the contract notice period and enter the Owner Notified date. The summary counts open items not yet reported to the owner — that number should always be zero.
- Price it with backup and submit the COR. Labor, material, equipment, subs, and markup per the contract. Enter the COR number, date, submitted value, and schedule days requested.
- Work the ball-in-court list every week. Items on you get priced; items on the owner or A/E go on the OAC meeting agenda.
- Record the decision. Approved, Rejected, or Void, the decision date, the CO number, and the approved value — which is often not the submitted value.
What the formulas calculate
- Days Outstanding — from COR submitted (or date identified if not yet submitted) to the decision date, or to today while open. Amber over 30 days, red over 60.
- Pending Exposure — for open items, the submitted value if priced, otherwise the ROM.
- By stage — count, ROM, submitted, and approved dollars for PCOs, CORs, approved, rejected, and void items, with in-cell bars.
- Contract value — original contract, approved changes, revised contract, and the potential contract value if every pending change is approved.
- Approval rate — approved dollars divided by submitted dollars on decided CORs. If it's consistently low, your pricing backup or your markup is the problem.
- Aging and ball in court — average days outstanding, items over 30 and 60 days, and how many open items are waiting on you, the owner, the A/E, subs, or suppliers.
Why pending change orders matter beyond the job
Pending exposure shows up in three places outside the project team:
- Cash flow. You've paid for the labor and material on changed work. Until the CO is signed, you can't bill it.
- The WIP schedule. Accountants are cautious about recognizing revenue on unapproved change orders, so large pending balances can make a profitable job look like it's fading. See our WIP schedule template.
- Claims. Changes that sit unapproved for months become disputes. The log's dates — identified, notified, submitted, decided — are the timeline you'll need if they do.
Common change order mistakes
Doing the work without a written directive
"Just go ahead, we'll paper it later" is how contractors end up performing changed work for free. Many contracts bar payment for work performed without written authorization. Get an email at minimum, a signed directive or CCD ideally.
Missing the notice period
Notice of a change often has its own deadline, separate from the pricing. If a change is also delaying the work, send a notice of delay too.
Pricing without backup
A lump sum with no breakdown invites a counter-offer. Price from quantities, labor units, and quotes — and attach them. T&M tickets signed daily are the backup for work priced after the fact.
Letting approved COs sit outside the budget
An approved CO that isn't added to the budget and schedule of values doesn't get billed. Close the loop the day it's signed.
From spreadsheet to system
A log works well for one PM on one job. Once you're tracking dozens of changes across several projects, the gaps show up: RFIs closed without PCOs, approved COs never added to the budget, nobody sure which version of the log is current. Field PM links RFIs to change orders, carries approved COs straight into the job budget and schedule of values, and shows pending exposure on the PM dashboard. Start a free 30-day trial — no credit card required.
Related free templates
- Change Order template — the document that turns an approved COR into a signed CO
- RFI template — the most common origin of a change
- Notice of Delay Letter — when the change also delays the work
- Time & Material Ticket — backup for changes priced after the fact
- Schedule of Values — add approved COs so they get billed
- WIP Schedule — see how pending changes affect earned revenue
- Backcharge Notice & Log — the other side of change: costs you recover from subs
- Browse all free construction templates
